Replies to post #753993 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

IMO that wasn't the highlight of TH's response, this was:

"So I think the significance of Dave’s epiphany is that he does realize, and now is willing to say, that what the big banks have been able to get Treasury and FHFA to do with Fannie and Freddie since the financial crisis IS beginning to have negative repercussions on primary market lenders (here, via the LLPA issue), and he doesn’t like it."

That's a catalyst for Recap & Release.

The conversation needs to shift from whether or not they should be released to...

Who will be the new owners of FnF.

Hint: It won't be legacy commons.

Latest from TH: "But when FHFA then says Fannie and Freddie must raise the LLPAs on loans to higher-income, better credit-score borrowers to (slightly) lower the fees on affordable housing loans, well, THAT’s a problem. No. The problem is making Fannie and Freddie’s sole business non-economic in the first place. And if the LLPA looniness gets more people to focus on that– including in the Biden administration–that will be a good thing."

From 04/22: "If FHFA really wanted to “advance [Fannie and Freddie’s] mission of facilitating equitable and sustainable access to homeownership,”?? it wouldn’t be imposing the equivalent of price controls on their business, it would scrap the Calabria capital standard, and replace it with a true-risk based standard that lets the companies price their business themselves, on an economic basis."

[FOFreddie]

Thanks Robert - The LLPA wealth redistribution proposal is a good way to make the GOP Congress choose - let the JB Admin totally use the GSEs for political gain or just continue supporting the mortgage bankers and commercial banks. The GOP should know that if JB is successful garnering votes from FHFA handouts then the commercial banks are next up for nationalization

[Donotunderstand]

https://singlefamily.fanniemae.com/media/9391/display

As I recall - someone provided a link that was color highlighted to show the key changes

This is the new rate chart

As I read it (other than some crazy stuff on the far right that must be out of context IMO IMO) -- those with lower FICO scores have a higher fee ?

see for example the 80% column - as the FICO score decreases the rate goes from .375 to 2.875 .

I just learned about LLPA and assume it is what the lender pays to F and F (and I assume charges the borrower up front?)

https://selling-guide.fanniemae.com/Selling-Guide/Selling-Securitizing-Delivering-Loans/Subpart-C1-General-Info-Execution-Options-Loan-Delivery/Chapter-C1-1-Execution-Options-Overview/1121260591/When-is-a-loan-level-price-adjustment-required.htm

https://singlefamily.fanniemae.com/media/9391/display