FANNIE MAE, FREDDIE MAC ADD FEES

Fannie Mae and Freddie Mac are raising the risk-based fee they charge on mortgages and - for the first time - imposing it on borrowers with high credit scores if their loan-to-value ratio exceeds 75 percent, the San Francisco Chronicle reported on Sunday. Lenders must pay the new fees on loans they deliver to Freddie starting March 1 and to Fannie starting April 1. Because loans typically take 30 to 45 days or longer to close, many lenders will incorporate them into their pricing very soon if they have not already. Existing loans will not be affected. Lenders can add this fee to the front-end points they charge customers, fold it into the interest rate, take it out of their own pockets or some combination thereof. What is notable is that for the first time, the fee will be imposed on people higher up the credit spectrum. Fannie and Freddie "are moving to risk-based pricing even in higher credit tiers," said LendingTree Chief Economist Cameron Findlay.



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