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  • Comment Detail

  • Date: 05/16/23
    First Name: Eric
    Last Name: Grathwol
    Email: eric@ezmortgages.us
    Organization Type: other
    Organization: EZ Mortgages, Inc.

  • Comment

    Hello, with Fannie Mae and Freddie Mac sitting on roughly $75billion net worth combined, why does the FHFA (and/or Congress) feel the need to increase LLPA's on the largest segment of the home buying and refinance population, those with credit scores from 680-779, with loan to value ratios between 80% and 94.99%? Plus, don't the LLPA's/guarantee fees still get swept through to Treasury, per the Conservatorship/sale/agreement from 2008? So, they're not even helping the agencies directly, anyway?

    If the mission is to try to broaden homeownership access and affordability (isn't that the role of government financing like FHA, VA, USDA, etc.?) it would seem that a reduction in LLPAs, across the board, would be more helpful.

    IF the newly proposed and implemented LLPAs are attempting to adjust for risk, I think something may be askew in the risk modeling, if it concludes that a borrower on a primary residence with a low fico and 3% down, is a safer/less risky borrower profile than that of an investment property or second homeowner, with high ficos and 30% down.

    To me, the bigger crux of homeownership access and affordability is not the LLPAs, which are on an individual basis a drop in the bucket, yet in aggregate add up to billions for the GSE's (and Treasury now), but rather figuring out how to boost incomes and create more housing inventory, which will move the needle much further than saving a borrower a couple grand on their home purchase or refinance costs. Those are obviously not places within the FHFA's purview, but rather that of our Congressional leaders. Whom, oddly enough, only make like $250k/yr, but they're all multi-millionaires many times over; maybe that's what happens while spending a lifetime in public service? Wasn't it funny in the "who's got top secret documents at home" stories, how each of their homes were really, really, nice ones? And what's a congressional or even VP or Presidential salary? Ok, now I'm into my "whatever happened to citizen legislators" rant, but... that's a different story that too has been long forgotten. It's easy to lose sight of those trying to get by, when you live in a five or ten million dollar lakefront home, right? So, thank you for allowing us common folk who are in the trenches every day helping people buy and refinance their homes, to provide input into how the LLPAs should, or should not be implemented.