Fannie, Freddie to raise mortgage lending fees

New York /
Dec.December 10, 2013 01:04 PM

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


Related Articles

arrow_forward_ios
From left: Fannie Mae's Hugh Frater and Freddie Mac's Michael DeVito
Government to back home loans over $1M
Government to back home loans over $1M
Residential Real Estate, Housing Market, Fannie Mae
Sentiment sinks deeper as market sidelines buyers and sellers
Sentiment sinks deeper as market sidelines buyers and sellers
Equifax CEO Mark Begor (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Equifax error might have harmed (or helped) mortgage applicants
Equifax error might have harmed (or helped) mortgage applicants
314 Wilson Avenue in Bushwick, Pennrose Holdings' Mark Dambly (Pennrose Holdings, Hope Gardens)
Pennrose, Acacia land $117M Freddie Mac loan in Bushwick
Pennrose, Acacia land $117M Freddie Mac loan in Bushwick
(iStock)
Mortgage rates falling back toward 5%
Mortgage rates falling back toward 5%
Fannie Mae's Doug Duncan (Fannie Mae, iStock)
Optimism continues slide among would-be homebuyers
Optimism continues slide among would-be homebuyers
A photo illustration of a crystal ball predicting future home prices (iStock)
Home sales, building to slow: Fannie Mae
Home sales, building to slow: Fannie Mae
(iStock/Illustration by Kevin Rebong for The Real Deal)
Existing-home sales leapt 6.7% in January
Existing-home sales leapt 6.7% in January
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...