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Home » Store » GSEs » Risk Fee or No Fee: Fannie's and Freddie's Approach to Defects

Risk Fee or No Fee: Fannie's and Freddie's Approach to Defects

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GSEs

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While Fannie Mae recently said it would announce details this year about its plan to let lenders pay a risk fee as an alternative to repurchase for some defective loans, Freddie Mac said it’s “business as usual” and the GSE doesn’t plan to make lenders pay a fee for retaining some loans with defects. “We did look at charging a fee, but we believe we have an alternative of recourses, which means the lenders are not paying any fee up front, and if the loan performs there is no repurchase,” Christopher Mock, Freddie’s vice president of quality control, told Inside The GSEs. He said this allows the lender and the GSE to walk together down the performance trail of the loan.
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