The Consumer Financial Protection Bureau and the Federal Housing Finance Agency have a long-standing relationship when it comes to their regulation of the mortgage industry. Recently, the Community Home Lenders Association (CHLA) wrote a letter to FHFA, urging them to pause their current efforts to adjust pricing for mortgage loan purchases and sales.
The CHLA is concerned with the potential for ‘short-term transition risk’ that could come with any sudden pricing adjustments. Essentially, the CHLA’s main concern is that the mortgage industry may not be prepared to handle the turmoil that could come from sudden changes in pricing parameters. The CHLA has instead recommended that the FHFA take a gradual and phased approach to their adjustments over the course of the next several years.
This is an important issue for the mortgage industry, as the FHFA has a great deal of control over the pricing parameters in mortgage loan purchases and sales.
Main Points:
• CHLA write letter to FHFA urging them to pause pricing adjustments for mortgage loan purchases and sales
• CHLA concerned with ‘short-term transition risk’ that could accompany sudden pricing adjustments
• CHLA recommends that FHFA takes gradual and phased approach to adjustments over several years
• FHFA has a great deal of control over pricing parameters for mortgage loan purchases and sales
You can read this full article at: https://www.housingwire.com/articles/chla-to-fhfa-please-make-no-further-pricing-adjustments-for-extended-period-of-time/(subscription required)
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