Can You Expect a Hike in the Fannie/Freddie Guarantee Fee in Your State?

The Federal Housing Finance Agency (the agency tasked with overseeing the Fannie and Freddie conservatorship) has announced that it intends to hike the guarantee fee on all loans sold to the agencies secured by properties in the states with the highest cost of foreclosure.  Those states are:  Illinois, Florida, Connecticut, New Jersey and New York.  This fee hike would go into effect in 60-90 days (it needs to be formally published in the Federal Register first for public comment), and means that loan originators will likely see a worsening in pricing on loans made on properties in these states in roughly 45 days.  Once the notice is published, you’ll have a chance to comment on the proposal at www.regulations.gov.  It’s worthwhile to make your voice heard, so take a few minutes and give them your thoughts on the matter!  You just need to wait until after the notice is officially published.

Happy originating!