Fannie Mae and Freddie Mac guaranteed fee increase will not go into effect in April as previously announced. Rep. Mel Watt, the incoming director of FHFA, said late last week that he would delay an increase in mortgage fees announced in early December. In a prepared statement, Mr. Watt indicated the delay of the loan fee increases “until such time I have had the opportunity to evaluate fully the rationale for the plan.” The planned increases included a sharp rise in fees from Fannie Mae and Freddie Mac for borrowers who do not have at least 20% down payments and credit scores between 680 and 760. This is good news coming at a time when rates have already seen an increase after the Fed announcement to taper off the purchase of mortgage-backed securities. We will keep a sharp eye on these developments after Mr. Watt is sworn in early January.
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