Connect with us

Published

on

close video Lenders weigh in on mortgage rate adjustments: ‘We’re no stranger to these changes’

United Wholesale Mortgage Chief Operating Officer Melinda Wilner and loanDepot loan consultant John Gerardi debunk mortgage rate changes from the Federal Housing Finance Agency.

Experts at two of the nation's top lenders claim homebuyers may not fully understand a new Biden administration rule that redistributes high-risk loan costs to homeowners with good credit. 

"I think there's a little bit of maybe misinterpretation," United Wholesale Mortgage (UWM) Chief Operating Officer Melinda Wilner told Fox News Digital. 

"A lot of people think that higher credit scores are now paying more for their mortgages than lower credit scores and that's actually not the case. It's just some of the changes were more impactful to certain pockets of credit scores and loan to value."

BIDEN'S MORTGAGE REDISTRIBUTION PLAN SPARKS OMINOUS WARNING AS EXPERTS NOTE SIMILARITIES TO PRIOR CRISIS

The new rules enacted by the FHFA on May 1 aim to help lower-income borrowers afford their monthly mortgage payment. Under it, borrowers with a credit score of 679 or lower and less money for a down payment will qualify for better mortgage rates than they otherwise would have, while those with higher ratings ranging from 680 to above 780 will pay increased fees.

However, LoanDepot broker John Gerardi told Fox News Digital that people in the upper-credit score range will still get the benefit of having a better payment option than someone with a lesser credit score. 

"They’re just maybe going to lose out on a very small discount that they might have had six to eight months ago with the old pricing grid," he explained.  close video PA Treasurer Stacy Garrity blasts Biden’s new mortgage rule punishing borrowers with good credit: ‘Disaster’

Pennsylvania Treasurer Stacy Garrity provides insight into President Biden’s new mortgage rule to subsidize risky loans.

According to Gerardi lenders have been complying with the new adjustments way before they went into effect. 

"These adjustments have been in play for a long time, and [the FHFA] go back to the drawing board, analyze which loans are doing better than other loans and make their changes," the New York-based loan consultant explained. "So right now we have the newest of their wave of changes, which most lenders were made aware of in January and already had started to build it into their pricing model."

Both Gerardi and Milner emphasized that the rate changes are normal and part of the FHFA's typical process for evaluating prices.

"Rates change all the time. The adjustments change often as well. So we're no stranger to these changes," Wilner said. 

REALTORS DEFEND HOMEBUYERS OVER BIDEN'S ‘UNECCESSARY’ MORTGAGE RULE: ‘NOT THE TIME FOR FEE INCREASES’

However, she also pointed out that concerns from buyers have become "a little louder" since the changes began circulating in the media and challenged the idea that good creditors were paying the difference in new rates for poor-credit buyers. 

"It's just different adjustments," Wilner said.

"It's nothing that you can really tangibly feel when a borrower comes to a lender and says, hey, you know, what's my rate going to be, what's my payment, we give the rate with everything built into it. It's not normally, hey, yesterday it was this, and today it's this kind of thing," she added. "I think the attention to it kind of makes people feel that way, but they're not seeing tremendous amounts of difference between it."

A recent change to the Federal Housing Finance Agency (FHFA) pricing adjustments has many buyers concerned about mortgage payments. Some have said the changes give better rates for buyers with low credit and have good credit buyers subsidizing those (AP Photo/Rich Pedroncelli / AP Images)

In an attempt to alleviate fears, FHFA Director Sandra Thompson said in a statement last month that the new fees will not "represent pure decreases for high-risk borrowers or pure increases for low-risk borrowers" and will instead be targeted at "products such as second homes and cash-out refinances."

"Many borrowers with high credit scores or large down payments will see their fees decrease or remain flat," Thompson explained. 

The motivation behind it, according to Gerardi, may be to get first-time homebuyers into the market. 

"We took some hits during the pandemic and now we want to make our new changes to kind of inspire first-time homebuyers, give them a little bit of benefit, even if they don't have the best credit," he said. "But in order to give to one side of the spectrum, they have to take from another."

Gerardi added that the pricing model for those purchasing second homes has also changed with the new FHFA rules. In the past second homes were priced like primary residences, but are now being priced "out closer to what an investment property would look like."

"There is a lot of risk to financing a second home investment property, especially with these inflated prices," he said. "So that's definitely a risk that shows you the intention behind it is where do we [FHFA] feel like the chips are going to fall in today's day and age? Who is going to really take that homeownership and basically hold on to it with all they've got? – The first-time buyer."

“A lot of people think that higher credit scores are now paying more for their mortgages than lower credit scores, and that’s actually not the case.” – Melinda Wilner, United Wholesale Mortgage COO

Given the tumultuous housing market with inventory shortages, high rates, and skyrocketing costs, the risk associated with second homes and investment properties has come under a new lens.

Market volatility has some experts like Gerardi concerned about these changes and the fear surrounding them could have a negative impact on an already weak housing market. 

"So with these changes that are coming up, besides just discouraging people from coming out and looking to buy homes, they're already feeling like that they're behind the eight ball being a seller's market," he explained. "But now you might discourage sellers from wanting to list their homes because they're now concerned, well, what am I going to be able to afford on my next purchase?"

"The last thing that we want to do is discourage sellers from even listing their home because of the inventory issue that we're dealing with," he added.  close video Biden’s mortgage redistribution rule adds ‘insult to injury’: Brian Lewis

Manhattan broker and ‘America’s Agent’ Brian Lewis argues the Biden administration is putting ‘one more boot on our neck.’

Wilner, however, said she does not believe the changes will "halt" the housing market as seasonality and numerous other factors come into play when buying a home.

"I don't see any of these LLPA changes as catastrophic or anything too significant that will impact a lot of people from buying homes," she said. "The bigger impact is really what are rates holistically going to do. These adjustments are not as significant as if rates came down into the fives and into the fours and into the threes again." 

CLICK HERE TO READ MORE ON FOX BUSINESS

"The hope is that there is some impact, especially on the lower credit and where there were decreases and maybe there is a group of people that now can buy the home based on changes that were made there," Wilner added. 

As fears still remain for many homebuyers, the true impact of these rates is yet to be seen. Gerardi noted these changes could be reevaluated, and new adjustments could come within the year if the desired outcome is not met.

Wilner and Gerardi both stressed the importance of maintaining a high credit score when buying a home.

FOX Business' Michael Lee and Kristen Altus contributed to this report.

Continue Reading

UK

MPs vote to decriminalise abortion in England and Wales

Published

on

By

MPs vote to decriminalise abortion in England and Wales

MPs have voted to decriminalise abortion in England and Wales.

The amendment to the Crime and Policing Bill, abolishing the prosecution of women for terminating their pregnancy at any stage, passed by 379 votes to 137.

It represents the biggest shake-up in reproductive rights for almost 60 years.

Labour MP Tonia Antoniazzi, who tabled the so-called “New Clause One” (NC1), said it would ensure women do not face investigation, arrest, prosecution or imprisonment in relation to any pregnancies.

She said the current “Victorian” laws had been used against vulnerable women, citing cases such as Nicola Packer, who was prosecuted on suspicion of having an illegal abortion. She was found not guilty in May.

“Nicola’s story is deplorable, but there are many others,” Ms Antoniazzi said.

Abortion in England and Wales is currently a criminal offence but is legal with an authorised provider for up to 24 weeks after conception. The procedure is allowed after this time in very limited circumstances.

It is also legal to take prescribed related medication at home if a woman is less than 10 weeks pregnant.

Ms Antoniazzi said NC1 was “a narrow, targeted measure” that would not change how abortion services were provided or the rules under the 1967 Abortion Act.

Pro-choice campaigners demonstrating for decriminalising  abortion in the UK
Image:
Pro-choice campaigners demonstrating for decriminalising abortion in the UK

She said: “The 24 [week] limit remains. Abortions still require the approval of signatures of two doctors, and women would still have to meet the grounds laid out in the Act.”

The MP said that meant healthcare professionals “acting outside the law and abusive partners using violence or poisoning to end a pregnancy would still be criminalised, as they are now.”

She added: “This piece of legislation will only take women out of the criminal justice system because they are vulnerable and they need our help.

“As I have said before, and I will say it again, just what public interest is this serving? This is not justice, it is cruelty and it has got to end.”

Please use Chrome browser for a more accessible video player

Should abortion be decriminalised?

The change will not come into effect immediately as the Crime and Policing Bill is still making its way through Parliament.

A separate amendment, put forward by Labour MP Stella Creasy, went further with a measure to “lock in” the right of a person to have an abortion while protecting those who help them.

However, her amendment was not voted on because Ms Antoniazzi’s passed, as expected.

Conservative MP Sir Edward Leigh, speaking against both amendments, described them as “not pro-woman” and argued they “would introduce sex-selective abortion”.

How did MPs vote?

MPs were given a free vote on the amendment, as is typically the case with so-called matters of conscience.

A breakdown of the vote showed it was passed overwhelmingly by Labour and Lib Dem MPs.

Read more:
Sky poll reveals public’s view on decriminalisation

Just eight Conservative MPs voted in favour, while all Reform UK MPs opposed the amendment, with the exception of the party’s leader Nigel Farage, who abstained.

Sir Keir Starmer was not present for the vote as he is currently in Canada for the G7 summit, but said earlier that his “longstanding in-principle position is that women have the right to a safe and legal abortion”.

The issue of women investigated by police over suspected illegal abortions has been in the spotlight due to several recent high-profile cases.

Ms Packer was cleared by a jury last month after taking prescribed abortion medicine at home when she was around 26 weeks pregnant, beyond the legal limit of 10 weeks.

In the Commons, Ms Antoniazzi cited another case of a young mother who was jailed for two years after she was forced to take illegal abortion medication by her abusive partner. He was never investigated.

Continue Reading

Sports

Judge urges NASCAR, teams to settle legal battle

Published

on

By

Judge urges NASCAR, teams to settle legal battle

CHARLOTTE, N.C. — A federal judge urged NASCAR and two of its teams, including one owned by retired NBA great Michael Jordan, to settle their increasingly acrimonious legal fight that spilled over into tense arguments during a hearing on Tuesday.

U.S. District Judge Kenneth Bell of the Western District of North Carolina grilled both NASCAR and the teams — 23XI Racing, which is owned by Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by entrepreneur Bob Jenkins — on what they hoped to accomplish in the antitrust battle that has loomed over the stock car series for months.

“It’s hard to picture a winner if this goes to the mat — or to the flag — in this case,” Bell said. “It scares me to death to think about what all this is costing.”

23XI and Front Row were the only two organizations that refused to sign a take-it-or-leave-it offer from NASCAR last September on a new charter agreement. Charters are NASCAR’s version of a franchise model, with each charter guaranteeing entry to the lucrative Cup Series races and a stable revenue stream; 13 other teams signed the agreements last fall, with some contending they had little choice.

The nearly two-hour hearing was on the teams’ request to toss out NASCAR’s countersuit, which accuses Jordan business manager Curtis Polk of “willfully” violating antitrust laws by orchestrating anticompetitive collective conduct in negotiations. NASCAR said it learned in discovery that Polk in messages among the 15 teams tried to form a “cartel” type operation that would include threats of boycotting races and a refusal to individually negotiate.

One of NASCAR’s attorneys even cited a Benjamin Franklin quote Polk allegedly sent to the 15 organizations that read: “We must all hang together, or most assuredly we shall all hang separately.”

Jeffrey Kessler, an attorney representing the teams, was angered by the revelation in open court, contending it is privileged information only revealed in discovery. Kessler also argued none of NASCAR’s claims in the countersuit prove anything illegal was done by Polk or the Race Team Alliance during the charter negotiation process.

“NASCAR knows it has no defense to the monopolization case so they have come up with this claim about joint negotiations, which they agreed to, never objected to, and now suddenly it’s an antitrust violation,” Kessler said outside court. “It makes absolutely no sense. It’s not going to help them deflect from the monopolizing they have done in this market and the harm they have inflicted.”

He added that “the attacks” on Polk were “false, unfounded and frankly beneath the dignity of my adversary to even make those type of comments, which he should know better about.”

NASCAR attorneys said Polk improperly tried to pressure all 15 teams that comprise the RTA to stand together collectively in negotiations and encouraged boycotting qualifying races for the 2024 Daytona 500. NASCAR, they said, took the threat seriously because the teams had previously boycotted a scheduled meeting with series executives.

“NASCAR knew the next step was they could boycott a race, which was a threat they had to take seriously,” attorney Lawrence Buterman said on behalf of NASCAR.

Kessler said outside court the two teams are open to settlement talks, but noted NASCAR has said it will not renegotiate the charters. NASCAR’s attorneys declined to comment after the hearing.

Bell did not indicate when he’d rule, other than saying he would decide quickly.

Preliminary injunction status Kessler said he would file an appeal by the end of the week after a three-judge federal appellate panel dismissed a preliminary injunction that required NASCAR to recognize 23XI and Front Row as chartered teams while the court fight is being resolved.

Kessler wants the issue heard by the full appellate court. The injunction has no bearing on the merits of the case, which is scheduled to go to trial in December. The earliest NASCAR can treat the teams as unchartered is one week after the deadline to appeal, provided there is no pending appeal or whenever the appeals process has been exhausted.

There are 36 chartered cars for the 40-car field each week. If 23XI and Front Row are not recognized as chartered, their six cars would have to compete as “open” teams — which means they’d have to qualify on speed each week to make the race and they would receive a fraction of the money guaranteed for chartered teams.

Discovery issues Some of the arguments Tuesday centered on Jonathan Marshall, the executive director of the RTA. NASCAR has demanded text messages and emails from Marshall and says it has received roughly 100 texts and over 55,000 pages of emails.

NASCAR wants all texts between Marshall and 55 people from 2020 through 2024 that contain specific search terms. Attorneys for the RTA said that covers more than 3,000 texts, some of which are privileged, and some that have been “deleted to save storage or he didn’t need them anymore.”

That issue is set to be heard during a hearing next Tuesday before Bell.

Continue Reading

Technology

Trump to extend TikTok deadline for third time, pushing decision out another 90 days

Published

on

By

Trump to extend TikTok deadline for third time, pushing decision out another 90 days

Muhammed Selim Korkutata | Anadolu | Getty Images

For a third time since taking office in January, President Donald Trump plans to extend a deadline that would require China’s ByteDance to divest TikTok’s U.S. business.

“President Trump will sign an additional Executive Order this week to keep TikTok up and running,” White House Press Secretary Karoline Leavitt said in a statement. “As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the Administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure.”

ByteDance was nearing the deadline of June 19, to sell TikTok’s U.S. operations in order to satisfy a national security law that the Supreme Court upheld just a few days before Trump’s second presidential inauguration. Under the law, app store operators like Apple and Google and internet service providers would be penalized for supporting TikTok.

ByteDance originally faced a Jan. 19 deadline to comply with the national security law, but Trump signed an executive order when he first took office that pushed the deadline to April 5. Trump extended the deadline for the second time a day before that April mark.

Trump told NBC News in May that he would extend the TikTok deadline again if no deal was reached, and he reiterated his plans on Thursday.

Prior to Trump signing the first executive order, TikTok briefly went offline in the U.S. for a day, only to return after the president’s announcement. Apple and Google also removed TikTok from the Apple App Store and Google Play during TikTok’s initial U.S. shut down, but then reinstated the app to their respective app stores in February.

Multiple parties including Oracle, AppLovin, and Billionaire Frank McCourt’s Project Liberty consortium have expressed interest in buying TikTok’s U.S. operations. It’s unclear whether the Chinese government would approve a deal.

— CNBC’s Kevin Breuninger contributed to this report

WATCH: Project Liberty’s bid for TikTok is aligned with U.S. national security priorities.

Frank McCourt: Project Liberty's bid for TikTok is aligned with U.S. national security priorities

Continue Reading

Trending