Webinar Replay: The Looming, Blooming, and BOOMING Note Market Webinar
Presented by Donna Bauer
When: Wednesday, May 10th at 7:00 pm EST
IMPORTANT CORRECTION!!!
During this webinar, many attendees said that just six hours earlier the Federal Housing Financing Association (FHFA) had rescinded the rule I was discussing. THAT IS NOT THE CASE!
The rule that I discuss in this video has been in full force and effect since May 1, 2023 and has not been rescinded.
There were three parts to the new rules that came out:
1) Borrowers with credit scores of 680 or higher will be penalized with higher interest rates and fees
2) Buyers with down payments of 15-20% will pay higher fees
3) Borrowers with debt-to-income (DTI) ratios of greater than 40% will have to pay upfront fees
ONLY the DTI rule has been rescinded,
The FHFA had delayed implementation of the rule until August 1st because of overwhelming pushback from the Mortgage Bankers Association and other industry professionals who rightfully claimed the rule was not workable and would destroy sub-prime lending. It’s pretty obvious to understand that if someone has a debt-to-income ratio of greater than 40%, the likelihood that they will have cash to pay upfront fees is slim.
In summary, while it is very unfortunate that borrowers with great credit scores and cash for down payments will continue to be penalized, the silver lining in all of this is that we will see a tremendous increase in seller-carryback mortgages for us to buy. The seller-carryback market will be booming!
References:
https://www.washingtontimes.com/news/2023/apr/18/joe-biden-hike-payments-good-credit-homebuyers-sub/
https://www.housingwire.com/articles/fhfa-rescinds-controversial-dti-llpa/
Retraction: On a separate matter, It has been called to my attention that my data for current inflation rates was incorrect. I’m not sure if it was me or my source, but either way, please know that inflation rates are not as high as I mentioned and have actually declined in the past two months, which is great. I apologize for the misinformation.
-Donna
Hosted By Donna Bauer
The Original NoteBuyer®
Donna is the recipient of the 2012 Jon Richard’s Educator of the Year Award for “Excellence in Note Buying Education and Training.”
She also received the coveted 2014 Noteworthy Industry Achievement Award for “Many years of sharing expertise in the note buying industry with all who ask.”
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