Updated over 2 years ago on . Most recent reply
Fees with credit scores
What’re everyone’s thoughts on borrowers with higher credit scores having to pay additional fees due to the New Federal Mortgage Fee Plan that is being put into place?? So ridiculous
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#2 Mortgage Brokers & Lenders Contributor
- Lender
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In my opinion, it seems unfair that individuals with strong credit scores are being penalized and individuals with lowers' scores are being rewarded. I do think it is important to note that similar LLPAs were already in place, the new plan just has heavier adjustments.
Under the revised LLPA pricing structure, a home buyer with a 740 FICO credit score and a 15% to 20% down payment will face a 1% surcharge – an increase of 0.750% compared to the old fee of just 0.250%….
It is a shocking move and the public backlash has certainly confirmed that.
Federal Housing Finance Agency Director Sandra L. Thompson called it "another step to ensure that [Fannie Mae and Freddie Mac] advance their mission of facilitating equitable and sustainable access to homeownership." While I agree with the importance of equitable and sustainable homeownership, penalizing those who worked hard to maintain excellent credit scores, and rewarding those who did not is simply not fair.