After being seized by the federal government last month, Fannie Mae and Freddie Mac are canceling fee increases that were scheduled to go into effect this month. Both companies had announced plans to increase fees on all loans by 0.25%. These increases were planned as the organizations struggled to stabilize their finances over the last year.
Fannie Mae made the announcement last Thursday and Freddie Mac followed soon after. However, Freddie Mac will raise fees for some high risk loan products next year. They will also increase the requirements for low down payment loans, but will keep financing these types of mortgages.
Freddie Mac said the changes would provide "some relief from the challenges in the current market environment". In the last year, both Fannie and Freddie have increased several fees as well as the requirements such as down payments and credit scores borrowers must have. Fannie Mae Chief Executive Herb Allison also stated they are "evaluating all of our risk-management, underwriting guidelines, pricing and costs."
This is great news for consumers that are considering buying or refinancing a home. For example, on a $200,000 home it will save borrowers $500.
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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/
Our branch specializes in affordable lending options including FHA / VA and the Community Heros program. As both a banker and a broker, you have access to a full menu of products including all Fannie Mae and Freddie Mac Conforming loans, Reverse, Jumbo and Commercial financing on a variety of property types. We are located in Cary, North Carolina and are within easy reach of the entire RTP Area including Wake, Durham and Orange Counties.
