The Federal Housing Finance Agency plan to allow more borrowers to refinance into lower-rate mortgages brought plenty of analysis from the industry about the plan's merits.
As part of the plan, the FHFA removed the 125% loan-to-value ceiling for Fannie Mae and Freddie Mac loans to qualify for a refi. The federal regulator also cut back on risk-based fees and representation and warranty risks that make lenders reluctant to accept certain loans. An appraisal also is no longer required as long as an automated valuation model estimate is already provided.
HousingWire CEO Paul Jackson shared his views on the plan during an interview with CNN American Morning Tuesday.
"There are 11 million mortgages underwater," Jackson said. "There's 4 million borrowers who might benefit from this. It's certainly a positive. I don't know how you can say it's not a positive to say, 'We're going to actually help people who are doing the right thing: They are underwater on their mortgage, yet they are still making payments'. Certainly giving them the ability access ultra low mortgage rates is a good thing. It's good for the economy and it's good for the mortgage market."
Paul Jackson is the former publisher and CEO at HousingWire.
Articles written by HousingWire Staff are non-bylined, and typically involve press release coverage and aggregation of coverage appearing elsewhere. So who put all these together? Our entire staff does!
The first thing you notice about New American Funding's Rick and Patty Arvielo is how much they like each other. That might seem like a foregone conclusion when you meet a married couple, but when that couple also runs an incredibly successful business together, I imagine it could get complicated. Read on to find out more about how this successful couple manages their life, and business, together.
For the first time since 1981, our industry is experiencing a rising interest rate environment. Some people may assume that the current market shift means their business will take a downward turn from which they will never recover. I don’t buy it. The way I see it, challenging times force us to refine our processes and practices.