Fannie, Freddie Roll Out FHFA-Backed Sharp Increase in LLPAs
December 20, 2013
Incredulous mortgage industry trade groups are pushing back against a controversial increase this week in loan-level price adjustments for loans purchased by Fannie Mae and Freddie Mac. The two GSEs under the direction of the Federal Housing Finance Agency rolled out their LLPA revisions Freddie calls them post-settlement delivery fees through bulletins to seller/servicers. The LLPA adjustments follow the announcement last week by outgoing FHFA Acting Director Edward DeMarco of another 10 basis point increase of guaranty fees Fannie and Freddie charge lenders.