POST TAGSLoan Programs
Blog posted On May 12, 2022
Effective May 2, 2022, we officially launched our own Private Label Security (PLS). Remember when the Federal Housing Finance Agency (FHFA) increased upfront fees on second home and high-balance loans? With our own PLS, we can now help you avoid these fees and offer you a much better price on your second home/ investment property loan.
What Happened with Increased Fees?
In January 2022, the FHFA introduced higher upfront fees for certain second home and high-balance loans sold to Fannie Mae and Freddie Mac. Starting April 2022, the new pricing framework increased upfront fees on second home loans by 1.125% to 3.875%. For a $500,000 loan, this could mean nearly $20,000 in additional upfront fees. Consequently, demand for second homes dropped by roughly 32% between January 2022 and March 2022. Many home buyers were deterred by the fees and avoided purchases without a more affordable option for vacation homes and investment properties.
How Our PLS Can Help You Save Thousands
With our own PLS, we don’t need to sell our loans to Fannie Mae or Freddie Mac
In other words:
PLS Program Highlights
To learn more about our exclusive PLS program, contact us today!
Sources: HousingWire, Redfin