Seconds That Aren’t Piggy
Just as the CFPB readies its assault on cashout-refi discount fees comes FHFA’s request for views on a new Freddie Mac product that would give borrowers access to their locked-up equity without a new first lien at a higher rate or a traditional home-equity second riding piggyback atop the first lien. With millions of borrowers facing mounting consumer-debt burdens and banks increasingly unable to offer likekind products on their portfolios, the proposal could prove a boon higher-wealth, to cash-strapped borrowers absent sudden house-price drops that leave them under water. Nonbank mortgage originators also have a brand-new gig.