Controversy Around Federal Rule that Lowers fees for Low Credit Score Homebuyers
A new Federal Rule from the Federal Housing Finance Agency (FHFA) is set to take effect on May 1. In an effort to increase home affordability, they are making changes to the Loan-Level Price Adjustment (LLPA) matrix. The controversy is how these changes might affect borrowers with good credit, and a reasonable down payment. Borrowers with good credit could pay up to $40 more per month on a $400,000 home with the new pricing adjustments, whereas borrowers with low credit would likely have a lower monthly payment under this rule. When the rule is spun to the extremes, it can [...]