Fannie Mae to Jack up Mortgage Fees this Spring

I have been looking for a good article to explain what is in the works this Spring in regards to new loan fees.  Good credit or now, Fannie Mae will be in your wallet more than ever.  If you have less than stellar credit scores or are putting less than 20% down, YOU NEED TO CLOSE ESCROW IN THE NEXT FEW MONTHS.  Please read this article and take it seriously.  The lenders are already dredding what you might have to deal with:

Here’s mortgage giant Fannie Mae’s sobering New Year’s greeting for home buyers and refinancers in 2011: Give me more money! If you want a loan this year, you’re going to have to pay more — thousands of dollars more in some cases — even if you’ve got stellar credit scores and bundles of cash handy for a down payment. Things could get much worse if your scores have been sagging with the economy and you don’t have much money upfront.

In a Dec. 23 memo to lenders in its network, Fannie announced that it had decided to impose a new schedule of higher add-on fees, similar to what Freddie Mac –  the other huge congressionally chartered mortgage investor — rolled out to jeers from the real estate industry just before Thanksgiving.

Both corporations have required massive federal financial infusions — estimated at close to $150 billion — since the housing market began deteriorating, and they now operate under a federal conservatorship arrangement. The Obama administration plans to submit long-promised proposals to Congress this month on what to do with the two — phase them out, restructure them, privatize one or both of them, or other solutions.

But meanwhile, Fannie and Freddie continue to fund or guarantee upward of two-thirds of new mortgage originations. Because of their sheer size and market dominance, they play pivotal roles in determining whether — and how fast — the housing market can rebound.

Their new fees scheduled to start this spring, however, don’t appear likely to make financing a home any easier. Some potential buyers who have high credit scores and hefty down payments may be surprised that even they are being targeted for higher “risk-based” fees.

Read the rest of the story:

http://www.latimes.com/business/realestate/la-fi-harney-20110109,0,6538732.story

 

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