Loan-Level Price Adjustment

This term refers to a new pricing guideline that will take your credit score and the amount of equity in your home to determine your interest rate.  For example, if your credit score is under 740 and/or the equity you have in your home is less then 25% this could possibly mean a higher rate.   This effects all mortgages back by Fannie Mae or Freddie Mac and may explain why you get a different rate quoted to you then the ones you see advertised.  If you would like an accurate quote on your loan, I can quote you the rate with the above factors built in.  Not to worry, If you loan is in process, I have already incorporated these factors into your rate.

Home Valuation Code of Conduct

The Home Valuation Code of Conductis a drastic change in the way that appraisals will be processed.  In the past if you were looking to buy or refinance a home you would call your loan officer and as part of the financing process we would order an appraisal from a local appraiser who we trusted to determine the fair value of your property. This new guideline takes the autonomy to of use the appraiser of our choosing out of our hands.  Now all appraisal orders will be run through a National review team who will choose who appraises the property and then review the information and forward it directly to the lender.  This will lengthen the appraisal process and nullify some of the expertise of local appraisers.  This guideline will take effect for all new appraisals ordered after May 1st.