Government Mortgage Interest Rates: A Serious Discussion about the Intertwined Topics of Risk Adjustment and Cross-subsidies
The Stoop (NYU Furman Center)
MAY 31, 2023
The core claim made by critics is that the changes, implemented on May 1, are a mechanism for a new and major economic cross-subsidy from less risky borrowers to more risky ones. Used by more than a thousand primary lenders, this grid is of adequate accuracy while being practical for those lenders to implement.
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