The Industry is Fighting Over This As We Speak!

00:00 – TheREsource.tv introduces the topic of the GSE’s LLPA scuffle in the real estate & mortgage industry and promises to explain the situation without using jargon. 😂🤩

00:23 – The changes in loan level price adjusters (LLPA’s) that caused an uproar several months ago now may have a political spin. 🏛 📢

00:46 – Is it true that buyers with higher credit scores are now subsidizing those with lower credit scores? The banking industry has taken sides and started slinging mud at each other! 😠↔😑

01:05 – Buyers with a credit score of 640 will pay significantly more than those with a credit score of 740, using an 80% loan to value ratio as an example. Better credit scores represent a better risk and are priced better accordingly. Facts. ☑

01:49 – Were the changes that were made to people with better credit scores and some areas got better while some got worse, but the end result is that low credit scores represent a higher risk for investors and thus pay a higher rate to offset that risk? 💸💰

02:08 – Dave Stevens highlights the dangers of both sides being able to use the GSEs politically, which has some merit politically, but not what the industry was peddling last week. 🎙

02:41 – Dave Stevens expresses concern that the GSEs may be used to pursue political and social agendas, which could lead to mistrust in how the GSEs come up with their analysis on expected default and severity. 🤓

03:15 – A regime change in Washington could result in a new director of the GSEs, which could set a dangerous precedent for how the GSEs are run. ⁉

#LLPA #mortgagerates #loanlevelpriceadjustments