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  • Comment Detail

  • Date: 08/26/24
    First Name: John
    Last Name: Meussner
    Organization: MMCD
    City: Fair Oaks
    State: California
    Attachment: N/A
    Number: RIN-2590-AB34

  • Comment

    To whom it may concern - upon review of FHFAs enterprise housing goals, it is concerning that the entities under FHFA (FNMA and FHLMC) are still operating under a government conservatorship yet failing to deliver meaningful propositions to the vast majority of home buyers.
    Every line of the goals focuses on "equity" and "low income", however FHFA has subsidized these goals by making borrowing far more expensive than needed for everyone else.

    Our housing market should not be subsidized with ever-increasing costs of well qualified borrowers, most of whom are in the middle class.

    FHFA has destroyed the second home/vacation home market with insanely high LLPAs, and LLPAs for all loans have increased drastically over the past years, despite risk being immensely low (average FICOs are up and home appreciation continues with no end in sight thanks to an inventory struggle). What used to be perfect credit under FHFA pricing guides (740+ FICO) is now TWO FULL TIERS below what is considered perfect.

    FHFA continues to gouge the middle class in the name of "equity". Wealthy borrowers continue to tap into private banking and portfolio lending options only available to high net worth borrowers, while FHFA reaches into the pockets of the middle class to fund their "equity" initiatives. What you're doing is growing the number of struggling prospective home buyers and home owners, not helping those already there.

    FHFA needs to shift to a focus of affordable lending options for EVERYONE, not one demographic at the expense of another.

    Further, as the market shifts, FHFA could help families immensely simply by removing the LLPA for rate/term refinances --- I've never received any explanation on how a borrower who has a perfect housing history presents MORE RISK (what lending should be based on) by simply lowering their monthly payment through a rate/term refinance. It is nothing more than an FHFA money grab.

    FNMA/FHLMC exist solely on the back of taxpayers, and I'm tired of seeing FHFA now gouge the majority of people who bailed out the entities. FHFA should balance their pricing and lending options to benefit EVERYONE, not continue to offer freebies and discounts to one population segment on the back of another. It's despicable policy from a taxpayer funded entity that carries a monopoly on the markets.

    Stop pretending "equity" means anything more than taking from one group to give to another.