While the info in the media is not exactly accurate (is it ever)?) it is true that the recent changes to LLPA’s (loan level pricing adjustments - which have always existed but recently modified), were done in an attempt to allow more people to qualify. They never learn! The original LLPA’s were mostly based on national statistics on defaults, slow pays, etc. That makes more sense! Higher risk loans pay higher rates. Not anymore :(
While the info in the media is not exactly accurate (is it ever)?) it is true that the recent changes to LLPA’s (loan level pricing adjustments - which have always existed but recently modified), were done in an attempt to allow more people to qualify. They never learn! The original LLPA’s were mostly based on national statistics on defaults, slow pays, etc. That makes more sense! Higher risk loans pay higher rates. Not anymore :(