Please, Fake News, Don't Give Insurance Regulators Any Bright Ideas

[...]as part of a broader repricing change announced last year, the FHFA eliminated fees altogether for conventional loans for about 20% of home buyers, financed by increased upfront fees for second homes, high-balance loans, and cash-out refinancings. The FHFA precedent—permitted because Fannie and...

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Bibliographic Details
Published in:Insurance Journal 2023-05
Main Author: Lehmann, R J
Format: Article
Language:English
Subjects:
Bans
Biden, Joseph R Jr
Credit scoring
Fees & charges
Government sponsored enterprises
Loans
Mortgage insurance
Mutual insurance companies
News media
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Summary:[...]as part of a broader repricing change announced last year, the FHFA eliminated fees altogether for conventional loans for about 20% of home buyers, financed by increased upfront fees for second homes, high-balance loans, and cash-out refinancings. The FHFA precedent—permitted because Fannie and Freddie have been in the agency's conservatorship for close to 15 years—is particularly concerning given recent cases of state insurance regulators moving to limit or ban the use of credit information without any explicit direction from state legislators to do so. Last year, Washington State Insurance Commissioner Mike Kreidler moved to adopt a permanent rule enacting a three-year ban on the use of credit-based insurance scores, after a predecessor emergency rule to do the same was declared invalid in September 2021 by Thurston County Superior Court Judge Indu Thomas.
ISSN:0020-4714