FHFA to delay new mortgage fees
The incoming director of the regulatory agency that oversees Fannie Mae (FNMA) and Freddie Mac (FMCC),Rep. Mel Watt (D., N.C.), said Friday night he would delay an increase in mortgage fees charged by the housing-finance giants, which was announced earlier this month by that agency.
Upon being sworn in, “I intend to announce that the FHFA will delay implementation” of the loan-fee increases “until such time as I have had the opportunity to evaluate fully the rationale for the plan,” he said in a statement. Earlier in the week, Fannie and Freddie had released additional specifics related to the plan that would cause fees to rise sharply for many borrowers who don't have down payments of at least 20% and who have credit scores of 680 to 760. Critics had pointed to rising interest rates and a fragile US economy as a reason to postpone the additional fees citing the fact the mortgage industry didn't need additional pressure in a time it is recovering. Still others had hoped to use the fees as a way to reduce the influence of Fannie and Freddie in the Mortgage market.
Read more in the Wall Street Journal.