I see a pattern. You may see it too.
Notice that FHA has made a few subtle changes that will allow originating brokerage companies not to be put through the ringer to get a Mini-Eagle?
They can now be VA-like sponsored by a lender that has a net worth of over $2,500,000 thereby removing small to medium sized, service oriented mortgage bankers from the FHA world.
What does that mean?
The big boys (aka banks) will dominate the FHA market, set higher prices for consumers but to their luck or skill or both will now have the government insure the mortgage!
I am an absolute proponent of government backed mortgages (along with an MI-like fee for each loan to pay off the bad future debt). But it looks like it is being done under an agency that is just not set up to do it.
If this continues, Fannie and Freddie become totally irrelevant. Why would you sell loans to the Big 2 of conventional loans without the G-Men giving you the insurance.
It’s all a far-conservative cluster funk that still let’s people with lower scores get approved with 3.5% down that they get as a gift but won’t approved someone for a refi with a 750 score, great debt-to-income ratio who has 6.5% because they have negative equity.
A pattern of morons.