Today, HPC President Ed DeMarco, testified before the House Financial Services Committee’s Subcommittee on Housing and Infrastructure. His testimony focused on 5 key points:
1. HPC members support the recent changes to the pricing grid, excluding the recently rescinded DTI-based pricing element.
No borrower with a higher credit risk profile will pay less than a borrower with a less risky credit profile under the new pricing grids.
Relative to the old grids, some borrowers will be paying more than before and some, including those in the riskiest cells, will be paying less.
2. Risk-based pricing is a common safety and soundness principle that benefits consumers.
3. Reduced pricing and lenient underwriting are not the best way to promote sustainable access to mortgage credit.
4. The requirement that the GSEs purchase a specified mix of housing goal loans has created an unsustainable bidding war that does not ensure homebuyer benefits.
5. Congress and the Administration should work to bring the GSEs out of conservatorship.
You will find HPC's complete written statement here.
You can watch the hearing in its entirety here.