In this episode, we talk about three financial topics in in the media have been much discussed recently:
40-year Mortgage: Effective May 8, 2023, the Federal Housing Administration (FHA) will join other entities such as Fannie Mae and Freddie Mac in offering a 40-year loan modification option.
Revised pricing structure for Fannie Mae & Freddie Mac Loans: Starting May 1st, a revised mortgage structure will be implemented with a 1.75% fee discount for borrowers with lower credit scores (a FICO score of 620), while the fees for borrowers with higher credit scores will be increased.
FedNow℠ Service: In July this year, The Federal Reserve will be releasing their controversial FedNow℠ Service. It is advertised as a new instant payment system (whose infrastructure is controlled by the central bank) that will allow “individuals and businesses to make payments in real time.”
I outline these current trends, what impact they may have on the marketplace, and what they mean for financially responsible investors and market participants.
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From Discipline to Freedom: Hot Topics in Finance: The 40-Year Mortgage, Mortgage Products Penalizing Responsible Borrowers, and the Impact of FedNow℠