National Mortgage News (09/08/08) Vol. 32, No. 48, P. 12; Collins, Brian
The Mortgage Bankers Association was among the trade groups that signed a comment letter to the Federal Reserve on August 29 requesting that the central bank alter its benchmark for subprime loans used in the Home Ownership and Equity Protection Act and proposed for use in Home Mortgage Disclosure Act reporting. The Fed's current benchmark is the weekly Freddie Mac primary mortgage market survey plus 150 basis points, but the trade groups believe a boost to 200 basis points is necessary to prevent jumbo loans from being misclassified and certain prime loans from being designated as subprime. Additionally, they recommend changes for loans insured by the FHA as well as for traditional loans with a 95 percent loan-to-value ratio used to calculate PMI premiums.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment