Fannie Mae, Freddie Mac fee increase put on hold

New York /
Dec.December 23, 2013 03:12 PM

The incoming Federal Housing Finance Agency director will delay a planned increase in mortgage lending fees pending the opportunity for him “to evaluate fully the rationale for the plan,” according to a statement from the agency.

The U.S. Senate confirmed Mel Watt on Dec. 10, and he will be sworn in on Jan. 6. Mortgage finance companies Fannie Mae and Freddie Mac, which the FHFA oversees, recently announced plans to raise loan fees in an attempt to make non-government-backed lending more competitive. The increases, which would be passed down to borrowers in the form of higher rates, are slated to take effect in March.

In his Dec. 20 statement, reported by the Wall Street Journal, Watt said that he also wants to evaluate “the plan’s likely impact on the [companies’] risk exposure, the cost and availability of credit and how the plan would interface with the qualified mortgage standards.”

He added that he will elaborate further after the FHFA swearing-in.

“I felt that it was important to announce my intentions now because of the prospect that some lenders could start to price the announced changes into the market well before the effective dates of the changes,” he added in the statement. [WSJ]Julie Strickland


Related Articles

arrow_forward_ios
(iStock)
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Capital pains: How lenders are getting creative to get paid
Capital pains: How lenders are getting creative to get paid
Capital pains: How lenders are getting creative to get paid
(iStock)
Refinancing has saved homeowners billions, but window is closing
Refinancing has saved homeowners billions, but window is closing
RIP: Zombie homes on the decline
RIP: Zombie homes on the decline
RIP: Zombie homes on the decline
NY seeks $540M in mortgage aid. Homeowners need $6B
NY seeks $540M in mortgage aid. Homeowners need $6B
NY seeks $540M in mortgage aid. Homeowners need $6B
The Princeton Club flag in front of 15 West 43rd Street (Google Maps)
Paper Tigers: Princeton Club defaults on $39M mortgage, may lose digs
Paper Tigers: Princeton Club defaults on $39M mortgage, may lose digs
arrow_forward_ios

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

Loading...