Looks as though another DPA program lenders have been using is potentially on the chopping block. It is however a rebate based method being used that has Freddie Mac and the CFPB concerned.
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You are misrepresenting what the Sapphire program is. The rate is actually more like 4.75% and there is $0 in premium pricing. Also the broker’s comp is cut in half to help with the down payment. This means that someone up the food chain is really getting fat. The broker and the consumer are getting screwed.