GSE Fee Changes Too Small to Notice?

By Jann Swanson

Posted To: MND NewsWire

Changes to Fannie Mae and Freddie Mac’s fee structure were announced by the Federal Housing Finance Agency (FHFA) on Friday. But in the words of The Wall Street Journal, “the changes are so small that few borrowers will notice .” Modifications to the Loan Level Price Adjustments (LLPA) will result mainly in slightly lower fees to borrowers with weaker credit. FHFA said it was directing the government sponsored enterprises (GSEs) to eliminate the 25 basis point adverse market fee they implemented in March 2008 and replace if “with targeted increases in guarantee fees to address various risk-based and access-to-credit considerations.” Those “targeted increases” will be a 25 basis point increases in fees for borrowers with credit scores above 700 and loan-to-value (LTV) ratios under 80 percent…(read more)

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