Premiere Mortgage Services Inc. - Dana Bain

Consumers & Colleagues -- IMMEDIATE ACTION REQUIRED!

February 13th, 2009 7:43 PM by Robin Bain


TO: All Industry Professionals


Contact your Congressional Representative, U.S. Senator and the White House in opposition to Fannie Mae and Freddie Mac’s charging of unnecessary and excessive fees. Everyone, including small business mortgage professionals, support staff and loan officers, should call their Congressional offices in Washington, as well as state and district offices.

PLEASE Urge others to join in this action as well!

Fannie Mae and Freddie Mac are charging unnecessary and excessive adverse market fees in certain areas of the country. In addition, these federal government agencies are also charging additional risk-based pricing fees, which are freezing the mortgage market and preventing much-needed recovery. These fees negatively impact small business mortgage professionals and their consumers by increasing the overall costs of most loans. For example, fees are charged for certain credit scores that traditionally signify a good credit risk. Another barrier created by the GSEs to a housing recovery are higher fees for investor-owned properties. The GSEs should encourage investor purchases, not punish them for helping to remove non-performing loans from the balance sheets of banks and lenders. In addition, the GSE’s are limiting how many properties they will finance for an investor. Such an arbitrary calculation is not justified and each mortgage should be addressed on its merits.

Please contact your Senators, Representatives and the White House by phone and e-mail and tell them to take action against existing pricing adjustments and future increases.

Click here to take action today! Take Action!

Talking Points & Other Reference Material:

Fannie Mae Announcement

  • Consumers will ultimately bear the burden of these increased fees.
  • Many first time buyers are excluded from home ownership, as these GSE fees make purchasing unaffordable.
  • Homeowners with existing mortgages are prevented from refinancing into more affordable fixed rate loans.
  • The GSEs did not provide adequate justification for these increases.
  • How were the “representative credit scores” determined?
  • How did the GSE’s determine the Loan-Level Price Adjustment Matrix (LLPA) used to calculate these increased fees?
  • The increase in fees inhibits mortgage affordability, contradicting the core mission of both FNMA and FHLMC.
  • 100% loans were approved through the automated underwriting engines of both Fannie Mae & Freddie Mac with debt-to-income ratios as high as 65% based on gross monthly income before taxes. Credit scores in the mid-500 range were also in the equation. These loans were then granted final loan approval by the mortgage lenders’ underwriters (not brokers) and then sold in the secondary market.
  • The existing obstacles hindering housing market stimulation compound the fees charged by the GSEs. These include the GSEs not purchasing bond loans, lack of sufficient first time homebuyer programs, no 100% loans available to well qualified buyers, investor loans that are priced our of reach, and no jumbo loans available with favorable terms (no 30 year fixed rate products).

Closing Cost Before & After Chart


On December 23, 2008, the New York Attorney General Andrew Cuomo, GSEs Fannie Mae and Freddie Mac, and their regulator the Federal Housing Finance Agency (FHFA) released a revised Home Valuation Code of Conduct (HVCC), part of their Appraisal Agreement first issued on March 3, 2008. The HVCC will be in effect May 1, 2009.

Should the HVCC take effect, lenders will no longer accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any third party including mortgage brokers.

To view NAMB’s press release and statement on the revised HVCC and Appraisal Agreement, please click here.

This Agreement will shift mortgage business primarily, if not exclusively, to banks and severely limit competition. The HVCC severely threatens small businesses and your profession nationwide by preventing mortgage brokers from participating in the independent appraiser process. It is critical for mortgage brokers to maintain an appropriate level of contact with appraisers to ensure appraisal quality and independence.

This is a "Hidden TARP" strategy to inject capital into banks on the backs of consumers and small business. The HVCC and other actions by Federal regulators and agencies are positioned to force consumers to utilize Federally-chartered entities in order to increase their profitability. We need to join forces to fight for the consumers and small businesses across

The time is NOW to fight this threat. NAMB urges you to prevent the HVCC from taking effect by making a donation towards this fight to ensure your industry’s survival. With this support, NAMB will be taking legal and legislative action.

Make a donation today to protect your profession!

Help NAMB gain support!

Please find attached two messages for appraisers and real estate agents for you to pass on and continue gaining support for the fight!

Save Your Business - Real Estate Agents

Save Your Business - Appraisers

Contact your Congressional Representative, U.S. Senator and the White House in opposition to the HVCC as well. Everyone, including small business mortgage professionals, support staff and loan officers, should call their Congressional offices in Washington, as well as state and district offices.

Let Congress know who they are hurting in the HVCC, THE CONSUMER; their constituents!!!

They need to understand the ramifications of the tens of thousands of homeowners who will not be able to refinance because the appraiser will fear being removed from a AMC list because they are not conservative enough on their valuations?

This will hurt the American consumer and the economy! We MUST prosecute those that commit appraisal fraud in this country and stop placing the burdens of the lack of enforcement of the current laws on the consumer. The consumer should not have to pay for the quick fixes that some come up with, or in this case, a deal that is cut from the NY attorney general’s office with the GSE’s!

THE CONSUMERS ARE GOING TO PAY THE ULTIMATE PRICE! Please share any cases you have as a result of the HVCC where the consumer pays a higher price, delays occur in the underwriting process, rate locks are blown, etc. by sending me an email to: and put HVCC Example in the subject line. We are compiling these scenarios to utilize in our lobbying efforts and to submit to our attorneys as well.


Denise M. Leonard

Executive Director

Massachusetts Mortgage Association

607 North Avenue, Building 14/2, Wakefield, MA 01880

Phone: 781-246-0601; Fax: 781-246-2625

Posted in:General
Posted by Robin Bain on February 13th, 2009 7:43 PM

Dana, You commented on my blog ( and it received a good response by Chris Jones from the Chris Jones Group ( you come by and reply to what he said. Thanks, Kyle
Posted by Kyle Edginton on May 8th, 2009 11:31 AM


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