- White House has come under fire for a revamp of mortgage fee rules on May 1
- Move will effectively penalize home buyers with good credit scores and help those with poorer ratings
- But what does it mean for you? Dailymail.com breaks down the changes
Mortgage experts and politicians are up in arms over a revamp to borrowing rules that will see home buyers with higher credit scores penalized in favor of those with lower ratings.
President Joe Biden has come under fire for changing the way Loan-Level Pricing Adjustments (LLPAs) are calculated, which will effectively ‘tax’ those who have built up good credit scores. The new rules come into effect May 1.
In real terms, it means borrowers with a good credit rating – above 740 – could pay as much as $375 extra in the long run while those with poorer scores – below 639 – stand to save up to $6,000.
The exact figure will vary depending on the buyer’s credit score, downpayment size and the value of the property.
Here Dailymail.com breaks down what you need to know…
What is an LLPA and how is it paid?
A loan-level pricing adjustment (LLPA) is a risk-based fee added onto a home-mover’s closing costs.
It effectively covers a bank for any losses they may incur on a mortgage.
An LLPA is calculated using a series of factors including the loan-to-value (LTV) rate of the mortgage and the borrower’s credit score.
Though a buyer can theoretically pay their LLPA upfront, the vast majority have the fee added onto their mortgage payments as it works out at very little per month.
The fee was introduced in April 2008 in response to the financial crisis. It does not apply to Federal Housing Administration (FHA), Veterans Affairs (VA) or US Department of Agriculture (USDA) loans.
What is changing?
Fannie Mae and Freddie Mac – which are regulated by the Federal Housing Finance Agency (FHFA) – are changing the matrix by which they calculate LLPA fees for buyers.
It means any loan backed by these two organizations will be impacted by the change – around 60 percent of the mortgage market, according to the Urban Institute.
The move was intended to help more first-time buyers from less affluent communities onto the housing market.
The average American credit score if 711, according to figures by FICO.
If you have a top credit score – for example those above 720 – you will still pay less than those with lower ratings.
But those with credit scores under 680 will see the penalty reduced from May 1.
The worst affected buyers are those who have a credit score of 740-759 and a downpayment of between 15-25 percent.
Those in this category now face an LLPA worth 1 percent of the market, compared to an old fee of 0.25 percent.
Buyers who stand to save the most are those who have a credit score of below 639 and a downpayment of between 95 and 97 percent.
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| Immigration
THE BIDEN LEGACY: HHS Whistleblower Tara Lee Rodas Tells Congress Biden Administration Is “Middleman” in Multi-Billion Dollar Migrant Child Trafficking Operation
HHS whistleblower Tara Lee Rodas testified today in front of the house Judiciary Committee.
Rodas told Congress that today in the United States children will work at slaughter houses, factories, and restaurants to pay their debt to the smugglers, traffickers and cartels.
And… The US Government has become the “middleman” in a large scale multi-billion dollar child trafficking operation, run by bad actors seeking to profit off the lives of children.
So is this what Joe Biden meant by he wants to ‘finish the job’ in his second term?
Todas told Rep. Andy Biggs, “There was no one with law enforcement experience overseeing where children are going.”
Here is the testimony by HHS employee Tara Lee Rodas on “The Biden Border Crisis: Exploitation of Unaccompanied Children.”
Tara explains in detail the disgusting abuse of migrant children by the Joe Biden regime.
There have been over 5 million illegal aliens, including migrant children, who have flooded across the US Southern Border under Joe Biden’s watch.
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| Politics
Nearly 80% of voters ‘closely following’ Hunter Biden scandals as 2024 nears: poll
Despite the Dems’ best efforts to bury the story, more than three quarters — 78% — of American voters have been “closely following” news reports about First Son Hunter Biden’s scandals, according to a new Rasmussen poll.
And more than two-thirds of voters believe it is a “serious scandal” that Hunter allegedly received “preferential treatment” during an IRS tax investigation.
Among Republicans, 82% say it’s serious, and 71% of independents agree.
Even 53% of Democrats say it’s serious.
As the scandal tiptoes closer to the White House, it’s not going to be as easy to censor as it was in 2020.
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| Global Economy
Argentina to settle Chinese imports in yuan as China marches into South America to dethrone US dollar
- Argentina will pay for US$1.04 billion of Chinese imports in April in yuan instead of US dollars and then US$790 million per month from May
- The yuan has, according to Bloomberg, surpassed the US dollar for the first time in cross-border transaction in China amid increasing de-dollarisation efforts
China’s push for greater use of its currency in bilateral trade settlements has made further inroads in South America, with Argentina set to follow Brazil and start to pay for Chinese imports in yuan rather than US dollars.
Economy Minister Sergio Massa confirmed on Wednesday that Argentina, following a meeting with Chinese ambassador Zou Xiaoli and companies from various sectors, had “activated the swap with China”.
Argentina will, Massa added, pay for US$1.04 billion of Chinese imports in April in yuan instead of US dollars and then US$790 million per month from May.
The second-largest country in South America is attempting to maintain its reserves of US dollars after a historic drought reduced exports by US$15 billion, including from its key agricultural sector.
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Iran’s Revolutionary Guard seizes oil tanker in Gulf of Oman headed for Texas
Naval forces of Iran’s Islamic Revolutionary Guard Corps (IRGC) seized an oil tanker in international waters in the Gulf of Oman on Thursday, the US Navy’s Fifth Fleet said.
The IRGC-N seized the vessel, named Advantage Sweet, at roughly 1:15 p.m. local time, the US Navy said, adding that the ship’s crew issued a distress call during the seizure.
“Iran’s actions are contrary to international law and disruptive to regional security and stability. The Iranian government should immediately release the oil tanker,” the Fifth Fleet’s statement read.
Open-source tracking websites reported the Marshall Islands-flagged vessel was bound for Houston, Texas, after having departed Kuwait on Tuesday.
It remains unclear why Iran would seize the vessel, though it appeared to mark the latest move in recent years’ quiet contest over fuel shipments involving Iran. Iran has seized at least five commercial vessels in Middle Eastern waters over the past two years, the US Navy’s Fifth Fleet said Thursday.
“Iran’s continued harassment of vessels and interference with navigational rights in regional waters are a threat to maritime security and the global economy.”
A US official speaking to Al-Monitor on the condition of anonymity said Iran’s move was “likely related to a back and forth between Iran and the United States” involving petroleum shipment seizures “as a result of claims violations.”
The official suggested Iran’s seizure today could be related to the case of the Suez Rajan, another Marshall Islands-flagged tanker reportedly under investigation by the Department of Justice for allegedly ferrying sanctioned Iranian oil to the South China Sea.
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