Fannie and Freddie ordered to raise fees

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Inman Connect San Francisco, Jul 16-20, 2018

In a small step that's part of a broader plan to bring back the secondary market for mortgages not guaranteed by the government, Fannie Mae and Freddie Mac's regulator today announced it's ordered the mortgage giants to increase the guarantee fees they charge lenders.  The average increase of 10 basis points -- 0.10 percent -- would cost a borrower with a $200,000 mortgage about $4,000 over a 30-year loan term, Bloomberg reports. The fee increase will go into effect Nov. 1 for loans sold to Fannie and Freddie for cash and Dec. 1 for loans exchanged for mortgage-backed securities. The increase will likely be passed on to borrowers in the form of higher interest rates, but banking industry trade groups say the increase is small enough it won’t stall mortgage lending, Bloomberg said."It’s obviously going to have a small impact on pricing, but given that mortgage rates are the lowest they've ever been, we think it's probably the right time to do it," Joseph Pigg, vic...