BrokerageIndustry News

Fannie and Freddie fee hike in states with long foreclosure timelines?

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Could homebuyers and loan applicants in states with lengthy foreclosure timelines -- from notice of default to repossession of the house by the bank -- soon be subjected to targeted price hikes on new mortgages? Could borrowers in places like New York, Florida, New Jersey and Maryland be heading for payback time? It sure sounds like it. In fact, if you listen to the latest ideas from Edward DeMarco, who oversees Fannie Mae and Freddie Mac in his role as acting director of the Federal Housing Finance Agency, you can pretty much bank on it. Though his comments on foreclosure timelines drew little notice, mortgage industry experts say they wouldn't be surprised by potentially controversial "geographic" price increases, as well as jumps in fees or insurance coverage for certain loan products such as low-down payment "community" mortgages aimed at moderate-income and minority applicants. It's all part of a much larger project now on the drawing boards for F...