Orlando Mortgage Blog

FHFA Announces Another Increase In Loan Guarantee Fees

September 24th, 2012 7:46 PM by BILL WILBANKS

We've known it was coming. The Federal Housing Finance Agency has directed Fannie Mae and Freddie to once again increase loan guarantee fees ("G-Fees"). This is one you want to pay attention to folks.

G-Fee pricing adjustments to increase on all conventional loans:

  • Conforming 30, 25, & 20 year fixed rates will have points go up 0.625%
  • Conforming 15 and 10 year fixed rates will have points go up 0.25%
  • Conforming ARMS will have points go up 0.375%

We're told these new fees will take effect on any rate lock beyond 11/9/2012. So how will this impact a borrower? A borrower, purchase or refinance, will have to pay an additional $625.00 for each $100,000.00 they borrow. Or, they may have the option of taking a higher rate so the lender rebate will cover it in many cases. So if you are even vaguely in the mortgage right now...don't wait till it's too late. 

Either way the Feds have decided to take more of your money in the future. This is after they already increased the guarantee fees last year and decided to take all but 10% of the profit Fannie or Freddie make on a serviced loan today to accelerate their repayment to the treasury. That was a mid stream rule change by-the-way this year that was also tied to a reduction in loans these GSE's can book yearly in going ahead so obviously fewer loans they can guarantee as time goes by. Talk about having both hands tied behind your back! Another example of the consumer getting hog tied by their own government you might ask?  So what else is new folks. At least you can now say you've been told and there is time to act if your inclined to do so.

Bill Wilbanks

Posted in:General
Posted by BILL WILBANKS on September 24th, 2012 7:46 PM

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