Secondary Marketing Executive: How Much Skin Should Be in the Game? Featuring TMC Capital Markets Committee Chairman Arthur Prieston
From page 27 of Secondary Marketing Executive's October Issue by Patrick Barnard "How Much Skin Should Be in the Game?" with commentary from industry veterans on Freddie Mac has made some adjustments to how borrowers can reach Home Possible Advantage’s 3% minimum down payment requirement. Click here to view the October publication.
Arthur Prieston, chairman of The Prieston Group, which includes subsidiary PBIS and affiliate American Mortgage Law Group, says, “Ideologically, the FHFA is more inclined to support programs where the borrower has a significant-enough stake in the investment.” This ideological stance, he says, could have been part of the rationale for the change.
Prieston, who also serves as chairman of the Mortgage Collaborative’s newly formed capital markets committee, points out that the recent guideline change for Home Possible brings Freddie Mac “more in line with Fannie Mae and the Federal Housing Administration, which both have three percent programs.” This, he says, also could have been part of the rationale.
Another possible factor in Freddie’s decision, Prieston says, is that “there is growing interest amongst affinity groups to co-support down payment assistance programs.” For now, lenders can still do 1% down loans using Freddie Mac and other loan programs.
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