The Federal Housing Finance Agency this week announced it would direct Fannie Mae and Freddie Mac to implement a three-pronged adjustment in guaranty fee the two government-sponsored enterprises charge lenders, including a 10 basis point g-fee hike beginning in March. The increases which would boost the average guaranty fee for new loans to over 60 bps are part of the FHFAs strategic plan for Fannie and Freddie to attract more private capital to the mortgage market and improve the relationship between g-fee and risk, according to FHFA Acting Director Edward DeMarco. As part of the plan, Fannie and Freddie will drop...
Officials close to the matter said the MI policy briefing was cancelled due to Senate approval of a new permanent director to the agency, Mel Watt, a former North Carolina Congressman.
A new report from FHFA confirms what small mortgage firms have long known: they can't catch much of break when it comes to Fannie Mae and Freddie Mac guaranty fees.
With the increase, the average g-fee for new loans will be in the range of 60 basis points. But there is some good news: FHFA said it would eliminate the up-front adverse market fee of 25 bps assessed on all but the four states whose foreclosure carrying costs are more than two standard deviations greater than the national average.