Here is the video version with visuals and charts: VIDEO
I’d like to address something from the Biden administration and the Federal Housing and Financing Authority who are putting in some new rules, and if you go back to my videos on Youtube, I’m talking about what the new rules are here.
People purchasing a property after May 1st, will be penalized for having a good credit score and a large down payment and they are going to take the money and give it to people who have lower credit scores or lower down payments and couldn’t afford to get good credit.
How are they going do that? And what method are they going to use to charge you? Is it points, is it a rate? We finally received some information about how they’re going to penalize you for having a good credit score.
What we call loan level price adjustments, LPAs, loan level price adjustments, are the points or the fees in which a lender would charge you.
The points are going to be worse, or the fees that they’re going to charge you will be worse by about 0.750 basis points. So it’s going to cost you more for an 80/20 loan with a good credit score.
So, people will benefit from having the lower credit score. The Biden administration’s plan is to take the money from the people who have done well, give it to the people who give it to the banks, subsidize the banks so the banks can offer this better rate here for them.
I hope that explains a little bit about how they’re charging you and how this is going to go. If you don’t like this, you can talk to your representative in Congress. You can talk to your Senator, you can talk to your local state legislators and so forth and not that they can do anything cuz this is a Biden administration rule.
But you’ve got to make your voice known that you’re not happy with this, and that this isn’t a good way to go for all intent and purposes. It’s basically mortgage socialism – and how you feel about that or not is what they’re going to do in Congress. If you have questions or comments be sure to reach out to us at (808) 913-0899 or team@thehawaiiteam.com
