Fannie Mae and Freddie Mac this week advised lenders that they will increase the guarantee fees they charge on all mortgage products by 10 basis points starting April 1, the result of a money-raising scheme enacted by Congress in the waning hours of the 2011 legislative session. A 10 bps point hike in fees charged by the government-sponsored enterprises may have a nominal effect at first, but the long-term implications are more significant. Politically, the increased fees will not be used to cover losses incurred by Fannie and Freddie – or even to repay the government’s costs incurred to...