Things That Make You Say WTF

while some may argue that a 10 basis point is not a significant increase, that’s not the point.

First of all, this was the result of a classic shell game (moving a decrease over to increase something else) and second of all, once a fee gets its foot in the door there’s only one direction for it to go. On top of that, this is just one more “small” increase atop a host of other “small” increases that have been passed on to the consumer and can make the costs of borrowing ridiculously unaffordable. Every huge pile of crap starts with one fee increase.

Fannie Mae and The Tax Man

Her concern is the repercussion of you defaulting on your payments. If you do…you’re looking at a tax lien. If you’ve got a tax lien, that means you still owe money to the IRS and you have a Fannie Mae backed mortgage. Fannie would therefore slip into second place in the payback-pecking-order.

Consequently, in this theoretical scenario, you’re a bad risk. SO…Fannie is gonna save herself the heartbreak and not even entertain a business relationship with you. Hell hath no fury like a woman scorned.

Fannie Mae Loans: Just Say “No” to LLPA

According to the latest LLPA (Loan Level Price Adjustment) — the matrix document that details the amounts applicable to loans delivered to Fannie Mae — whole loans purchased on or after April 1, 2011 are subject to Fannie’s trademark insanity.

And doesn’t Fearless Fannie just publish this chart and then hand mortgage bankers the black hat to pass this additional loan fee stipulation on to Joe Home Buyer?

At the end of the day, I raved about it before in other Fannie Mae loan news; but I think it’s time they pick up their charts and their graphs and take a long walk off a short pier.

Fannie Mae and The Wild West

So because Fannie Mae is now hurting for money, they’re increasing their costs. So the borrowers who are on higher ground now probably need to pony up a 25% down payment to compensate for the fees and the shame of an 800 FICO.

And in addition to this travesty, the instrument our Fannie Friends are using to perpetuate this latest infraction of civility is yours truly and other mortgage lenders by making us put on the black hats and knock the townspeople around with these inflated costs.

Florida Mortgage Loans, Fannie Mae, and The Circus

Fannie very clearly states that a new credit report is not needed, but the lender is still liable to have processes in place that will discover any undisclosed liabilities that may have been incurred after the original credit report review.

All righty then…I will continue to do whatever I need to make sure that the borrowers I represent are low risk and are put in the best mortgage product for their situation; and if all else fails I will pick up my Crystal Ball, grab a cape, and hop the Barnum and Bailey freight train.