Video Transcript
Could loan level pricing adjustments -- LLPAs -- be on the chopping block? The mortgage finance agency of the government, the FHFA, used social media to announce on Thursday with lots of caps and at least four exclamation points that it is looking to fix LLPAs, which are to mortgage rates what rating factors are to auto insurance. You have a history of speeding tickets, you pay a higher rate. You have a lower credit score, you pay a high rate. Same thing in mortgage. Risk factors stack up to affect the rate that you get on your conventional mortgage. The FHFA now wants to change that. If you want to see how LLPAs are affecting your mortgage price today and whether changes would affect you, we have a pretty cool calculator for LLPAs on the site. Plug in your traits. See how much extra you're paying right now because of your specific risk. I'm Dan with Homebuyer.com. Happy homebuying.
The Government Wants To Change Mortgage Rates Using LLPAs
The FHFA is considering changes to loan level pricing adjustments (LLPAs), which influence mortgage rates based on borrower risk factors. These adjustments determine rates similar to how auto insurance rates are affected by driving history.
Video Transcript
Could loan level pricing adjustments -- LLPAs -- be on the chopping block? The mortgage finance agency of the government, the FHFA, used social media to announce on Thursday with lots of caps and at least four exclamation points that it is looking to fix LLPAs, which are to mortgage rates what rating factors are to auto insurance. You have a history of speeding tickets, you pay a higher rate. You have a lower credit score, you pay a high rate. Same thing in mortgage. Risk factors stack up to affect the rate that you get on your conventional mortgage. The FHFA now wants to change that. If you want to see how LLPAs are affecting your mortgage price today and whether changes would affect you, we have a pretty cool calculator for LLPAs on the site. Plug in your traits. See how much extra you're paying right now because of your specific risk. I'm Dan with Homebuyer.com. Happy homebuying.
