Drew 2: What's the scoop with all of these articles about mortgages and fees lately?

27 Apr 2023 · 2 min

Watch on YouTube

1:50

In this solo YouTube broadcast, mortgage professional Andrew Postell (branding himself as “Drew 2”) tackles two prevalent misconceptions circulating in the mortgage industry. First, he clarifies that the Federal Housing Administration (FHA) does not offer a 40‑year mortgage product for homebuyers; the 40‑year term mentioned in articles is a lender‑only tool used to move properties out of foreclosure, not a consumer financing option. Second, he refutes the claim that borrowers with good credit pay a “tax” to subsidize those with bad credit via loan‑level pricing adjustments (LLPAs). He explains that LLPAs are risk‑based pricing mechanisms that can raise or lower rates based on credit and other factors, but they are not a redistribution tax. Throughout, Drew emphasizes his commitment to delivering straightforward, fact‑based mortgage advice, invites viewers to contact him with questions, and includes a brief personal aside about donating his hair.

Chapters

Hey now, Drew 2 time. Thanks so much for everybody's kind words about the new hair. I may not have it entirely figured out today, but I'm still working on it. Donating it to a great cause felt good, and it feels pretty good to be short too. Today I really need to talk about 2 big lies that are happening right now in the mortgage industry. Seriously, let's hit them off right now. Number 1, FHA does not have a 40-year mortgage. That you can use to purchase a home. I've read actual articles on this, how there's a great new 40-year loan that FHA is offering. It is not for you. It is an option for lenders like us to get somebody out of the foreclosure process. Do not believe the hype that you see out there if you've read these articles on the internet. The second one is the tax that people with good credit are paying to support people with bad credit. This is a complete Fabrication of what's going on with loan-level pricing adjustments. What this is, you've never seen this as a consumer. There are pricing structures built into mortgages and rates, and depending on your credit and other factors, your pricing could be higher or lower, right? Doesn't that make sense? I have better credit, so my interest rate is lower. There are articles out there saying that if you have bad credit, you'll get better pricing. Seriously, that's exactly what's going on. Or that if you have good credit, you're paying a tax to support people with bad credit. That's absolutely incorrect. I've always said that in my broadcasts and posts, they're not gonna be sexy, I'm not gonna be dancing, there's not gonna be stickers, but there's gonna be the truth. If you ever have questions about mortgages, call Drew. I'll steer you straight. This has been Andrew Postell. Hope you enjoyed today's Drew 2. Drew 2.