Fannie Mae and Freddie Mac Increase Loan Fees
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will increase the fees they charge to lenders to guarantee loans by an average of 10 basis points. The fee increases will likely be passed on to borrowers, with potentially higher interest rates. For example, an increase of 10 basis points could possibly cost a borrower $4,000 over the term of a 30 year loan on a $200,000 mortgage, according to Bloom berg.
The purpose behind the fee increase was to increase the financial stability of the two mortgage giants as well as start decreasing their stake in the mortgage market,” says Edward J. DeMarco, FHFA acting director. Fannie Mae and Freddie Mac own or guarantee about 60 percent of all mortgages in the U.S.