Fannie Mae announced it will double the fee it charges lenders effective October 1st. The “adverse market delivery charge” fee will double to 0.50 percent from 0.25 percent, adding a $1,000 to a $200,000 loan. The increase in costs to lenders will most certainly be passed on to borrowers in the form of additional fees or an interest rate increase. The fee increase will likely be passed on to borrowers and further press low down payment and credit challenged borrowers.
Why is Fannie Mae Raising Costs?
“Fannie Mae is announcing these changes to better align pricing with credit risks, mitigate losses, and support Fannie Mae’s ability to provide a stable source of liquidity to lender partners,” said a company spokeswoman.
Government-chartered Fannie Mae and Freddie Mac have been tightening standards and raising fees since last year and now finance about 70 percent of new US home loans. Use a mortgage payment calculator to see how these fee increases affect you.
