Thursday, April 28, 2011

Uncapping 203(k) origination fees: safe?

Hm. HUD's Mortgagee Letter 11-18 today removes a 1% cap on the basic fee a mortgage lender can take on a loan in the 203(k) housing rehab program -- a program that has had flipping problems in the past. So I get that they really want to move the housing market along, but is this the way? I'm not an expert here. Somebody explain why this is a good idea, if it is, OK?

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