Fannie, Freddie to Hike Loan Fees

The Federal Housing Fiance Agency (FHFA) announced that mortgage giants Fannie Mae and Freddie Mac will increase-by an average of l0 basis points-the fees they charge lenders to guarantee loans.

The fee increases are expected to be passed along to borrowers, possibly with higher interest rates.

Freddie Mac
Freddie Mac (Photo credit: Wikipedia)

However, banking trade groups say any increases should be minimal and shouldn’t hurt mortgage lending.

The purpose behind the fee increase was to increase the financial stability of the two mortgage giants as well as start decreasing their stake in the mortgage market.

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