What does someone look like when they started working in our business at age 15? Well, there’s always this interview last week with Robbie Chrisman (yes, RCIII) about how he started his mortgage podcast and the potential influx of youth versus the 60- to 70-somethings. Yes, the industry continues to evolve, and not always in good ways. Every lender out there is coming to grips with the upcoming conventional conforming loan-level pricing adjustments hitting cash out refis. (Fannie Mae, Freddie Mac.) Those who take the time to compare have noticed that the cost of a cash out refi is increasing, except for credit scores of 640 and below with an 80% LTV and any LTV with a score of 620<. Put another way, the FHFA is rewarding low credit score borrowers that need cash out. Cash out LLPAs are worsening depending on the LTV/FICO but there are some categories that are improving, but those are generally lower FICO and higher LTV and represent a small percentage of cash out busi
Recently, the Federal Housing Finance Agency (FHFA) announced the approval of two new credit scoring models, the FICO 10T and the VantageScore 4.0 for use by Fannie Mae and Freddie Mac.