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From Mortgage News Daily

When the new MIP [mortgage insurance premium] rules went into effect, disclosures needed to be updated. A very informal poll of correspondent investors indicates that some lenders got it wrong, and under disclosure rules, it isn't necessarily curable, which creates loans that are unsalable due to compliance errors, but are otherwise perfectly fine from a credit perspective. Although scratch & dented buyers might be tantalized, this could be a nightmare for lenders. So are companies going to go back to borrowers, where this is an issue, and try to refinance them from a 3.50% loan into a 4.5% loan, AND tell the borrower they will be paying for insurance for the life the loan instead of a shorter term (which may have been inaccurately disclosed)? That would be an interesting conversation.


Is it any wonder why growth in this economy has slowed to 1.7%?
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