The Real Deal New York

Fannie, Freddie to raise mortgage lending fees

December 10, 2013 01:04PM

edward-demarco

Edward DeMarco

Government-sponsored Fannie Mae and Freddie Mac said that they will increase fees charged to lenders by 0.1 percentage points — even though costs have already doubled in the past four years.

The Federal Housing Finance Agency, which regulates both firms, hopes to balance out the rate hikes by cutting other fees that arose after the financial crisis. However, lenders in four states — New York, New Jersey, Connecticut and Florida – won’t be so lucky and will continue to have to pay both sets of fees.

The increase will kick in at the start of March, the Wall Street Journal reported.

“The price changes provide better protection of and return to taxpayers, who are providing the capital support that keeps these companies operating,” FHFA acting director Edward DeMarco said in a statement.

Last month, Fannie Mae filed a suit against nine banks, including Bank of America and JPMorgan Chase, for working to suppress the London interbank offered rate, commonly known as LIBOR, as previously reported. [WSJ]Mark Maurer

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