Ep. 52 - Lower Credit Score, Better Rate? Massive Changes in Loan Prices Explained w/ Troy Silhan
Whether you’re a homebuyer, investor, real estate agent, or lender, there are some urgent changes you NEED to know about! No one is better suited for the task than today’s guest, Troy Silhan from Bank of England Mortgage. Troy excels at educating and advising clients on their best options, and has been named #1 Loan Officer in the 904 by Void Magazine for four consecutive years. In this episode, Troy and I discuss recent loan level price adjustments by FHFA to increase home affordability but result in higher consumer interest rates. These adjustments are controversial as they go against traditional lending principles. Today, we’ll highlight the need for education about lending practices and reveal alternative options like FHA loans. We also discuss this impact on real estate and mortgage lending and how you can stay informed and advocate for change if necessary.
So let’s dive right in, cut through the media headlines, and navigate what kind of credit score you need to lock in the best interest rate on your next deal!
[00:01 - 05:41] The dreaded May 1st! Understanding the loan level price adjustments and their impact on mortgage rates
[05:42 - 14:05] The potential impact of proposed changes to lending regulations on the housing market and borrowers
[14:06 - 19:09] Experts discuss the controversy surrounding mortgage insurance premiums and FHA loans
[19:10 - 27:48] New credit score changes will impact homebuyers and lenders alike
[27:49 - 34:44] Controversy surrounds this new homeownership program as the media misrepresents the intent
[34:45 - 41:26] Opportunities arise in the private sector as the real estate market adjusts to new regulations
[41:27 - 44:20] Reviewing the situation and dispelling the fear of the media
Quotes:
"The intent [of these adjustments] is good, but it's coming at a cost to another part of the consumer." - Troy Silhan
“Credit… Anytime you start messing with the foundation of that pillar, it starts to ruffle some feathers and really kind of piss some people off. And that's where we are today." - Quinton Harris
"You've never paid your mortgage interest rate per month. You've paid your monthly payment. And what's built into that is not the only interest rate; it's mortgage insurance, taxes, homeowners insurance, everything you built in." - Quinton Harris
"The moral hazard here is… if my job is to limit the risk or signature bank, why should I be encouraged to extend debt to someone that currently doesn't pay their bills.” - Quinton Harris
“If it’s internally not prepared to take place, it will never take flight.” - Quinton Harris
"Don't get upset about things you can't change." - Troy Silhan
Resources Mentioned:
You can find out more about Troy over at https://www.boejax.com/pages/bio.php?id=176. You can also connect on LinkedIn.
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Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/.
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