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Wednesday, December 11, 2013


Fannie Mae Mortgage-Guarantee Fees Increased by U.S. Overseer

Fannie Mae and Freddie Mac are set to raise the fees they charge lenders to insure loans as part of an effort to dial down their presence in the mortgage market, the Federal Housing Finance Agency (FHFA) announced. For the first time, the firms also will begin charging higher fees in four states -- Connecticut, Florida, New York, and New Jersey -- where long foreclosure timelines make it more costly for them to dispose of homes they take over after borrowers default. In addition, the FHFA is revising its fee structure so that borrowers with poor credit will pay more. The fee hikes, typically passed on to borrowers in the form of higher interest rates, take effect in March and the following month. Fees are set to rise an average of 14 basis points on a typical 30-year fixed mortgage.

From "Fannie Mae Mortgage-Guarantee Fees Increased by U.S. Overseer"
Bloomberg (12/10/13) Benson, Clea

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