Mortgage News: Possible Increase in Mortgage Fees

Homebuyers who obtain mortgages secured by Fannie Mae or Freddie Mac may find the fees they pay for their loans to be higher in the future.

When most people think of the costs associated with a mortgage, the first thing that comes to mind is the interest rates for the loan. Well, in addition to other charges, banks pass on the fees the two major mortgage guarantors (g-fees), Fannie Mae and Freddie Mac, charges them to the consumer. The Federal Housing Finance Agency (FHFA), which regulates both Fannie and Freddie, has asked for feedback about increasing g-fees as a means of reducing the risk associated with guaranteeing mortgages.

Industry and Consumer Groups Oppose Fee Hikes

Needless to say, MarketWatch report that major industry groups, such as the National Association of Realtors, the Mortgage Bankers Association, and the National Association of Home Builders, have issued public statements opposing this fee increase. Their argument is that the will curtail the credit opportunities for potential buyers and decrease their purchasing power. These groups fear that by limiting the pool for potential buyers, the still fragile housing recovery will falter. In addition, the FHFA has indicted that it is considering maintaining the adverse market fees it charges in New York and New Jersey, which affects those who purchase higher priced foreclosures.

To see if your are in a financial position to secure a mortgage to maintain your purchasing power, contact a local mortgage broker to schedule a consultation.