Posted on: 29th Jan, 2008 06:52 am
Somebody told me that federal has removed the YSP and there will be no prepayment penalty. Can some one please help me with the truth ?
No. But, there is a bill in Congress that has several modifications proposed including these items. Currently it has passed the House of Representatives. Then the Senate has to pass it. Then the President.
Although these 2 items are debated in the bill it does not appear either will be removed but modification of the current laws regarding them is likely.
If you want to read more do a search for "H.R. 1852: Expanding American Homeownership Act of 2007"
Although these 2 items are debated in the bill it does not appear either will be removed but modification of the current laws regarding them is likely.
If you want to read more do a search for "H.R. 1852: Expanding American Homeownership Act of 2007"
Hi Greg,
Welcome to the forum.
Hope you will enjoy participating in the forum and help people with your knowledge and sound suggestion. Hey you can introduce yourself and let others know about you at http://www.mortgagefit.com/introduce-yourself.html
Best of luck.
Larry
Welcome to the forum.
Hope you will enjoy participating in the forum and help people with your knowledge and sound suggestion. Hey you can introduce yourself and let others know about you at http://www.mortgagefit.com/introduce-yourself.html
Best of luck.
Larry
hr 3915 restricts ysp on subprime loans but has no true effect on conforming conventional loans.....it close resembles the new laws in nc and reads something like this...this is not however a final format......
a "home loan" includes:
owner occupied, 1-4 principal residence in north carolina
1st or 2nd lien, including line of credit
purchase or refinance transaction
loan amount less than or equal to the fannie mae® (fnma) conforming loan amount for a single family residence
home loans are subject to a "rate spread test", in which the apr is measured as follows:
on 1st liens, the apr exceeds by more than 3% the yield on treasury securities* having comparable maturity periods and the apr meets or exceeds the conventional mortgage rate** plus 1.75%
on 2nd liens, the apr exceeds by more than 5% the yield on treasury securities* having comparable maturity periods and the apr meets or exceeds the conventional mortgage rate** plus 3.75%
a "home loan" includes:
owner occupied, 1-4 principal residence in north carolina
1st or 2nd lien, including line of credit
purchase or refinance transaction
loan amount less than or equal to the fannie mae® (fnma) conforming loan amount for a single family residence
home loans are subject to a "rate spread test", in which the apr is measured as follows:
on 1st liens, the apr exceeds by more than 3% the yield on treasury securities* having comparable maturity periods and the apr meets or exceeds the conventional mortgage rate** plus 1.75%
on 2nd liens, the apr exceeds by more than 5% the yield on treasury securities* having comparable maturity periods and the apr meets or exceeds the conventional mortgage rate** plus 3.75%
