Freddie Mac announced this week that it's expanding its use of risk-based pricing and increasing fees on mortgages with higher risk, and will discontinue purchases of some higher-risk mortgages altogether. In a bulletin to sellers and servicers Thursday, Freddie Mac said the changes were a response to "continued deterioration of credit quality and declining home values in most areas of the country." The bulletin also provides guidance on using home-price data from the Office of Federal Housing Enterprise Oversight (OFHEO) to identify declining markets where higher down payments are required. Freddie Mac said post-settlement delivery fees charged on all mortgages sold under flow purchase contracts on or after June 1 will include a new delivery fee of 30 basis points for mortgages with loan-to-value ratios greater than 80 percent and credit scores below 740. After June 1, Freddie Mac will no longer purchase: Mortgages with loan-to-value (LTV) ratios greater than 97 percen...
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