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  • Writer's pictureRebecca Richardson - Mortgage Consultant

Today's LLPA fix is not the first


Today's LLPA fix is not the first

Anyone who closely follows the machinations of Loan Level Private Adjustments (LLPAs) sometimes implemented by the Federal Housing Finance Agency – and that’s a relative few among us – knew the reasons behind upcoming changes taking effect today, but today's LLPA fix is not the first. This exclusive club (think loan originators) also knew of other recent overhauls to the upfront fee structure as it relates to mortgages. Rebecca Richardson of UMortgage in Charlotte, N.C. is among the cognoscenti, the rare breed who really dig into the minute details of mortgage. And why not? As she describes, with a measure of self-deprecation, in an aside during one of her video primers in

“Mortgage Mentor” persona: “By the way, I don’t think that little girls dream of being mortgage brokers, but I do think the fact that middle school algebra made my brain happy and had ‘talks too much’ in my report card was serious foreshadowing.”

And we’re back. Starting today, upfront fees for loans backed by Fannie Mae and Freddie Mac will change toward making the chart more equitable as it relates to borrowers’ credit scores and down payment sizes. The change is largely to close a loophole that gave some in the “sweet spot” between those putting down 15% to 19% down payment – augmented with a nominal amount of mortgage insurance – better rates than those putting down, say 25%.


Both Richardson and colleague Nate Fein of UMortgage in Pensacola broke down the details in a previous interview with Mortgage Professional America. To put the issue in greater context, they reminded of the last significant LLPA overhaul related to second homes.


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