Since Fannie Mae already has the risk on the existing mortgage loan, why are LLPAs required?
LLPAs are required because Fannie Mae is putting a new loan on our books, which involves certain basic processing/administrative costs, accounting considerations, and the requirement for us to hold capital (based on the current risk) against every loan we acquire. Some Refi Plus loans may get better pricing than the borrower’s original loan did because risk characteristics may have changed. Refi Plus – Manual Eligibility Q55. Q56. Q57.
Related Questions
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