Hold the Presses! The recent announcement of fee increases to loans purchased by Fannie Mae and Freddie Mac may not go into effect after all or at least will be delayed!
This news came out late on Friday when Mel Watt, current U.S. Representative, who is scheduled to be sworn in as director of the Federal Housing Finance Agency on Jan. 6 made an announcement that he needs more time to review the higher fees announced by current director Edward J. DeMarco, earlier this month.
The announcement comes after complaints by the mortgage industry and other housing-industry participants. They believed that the higher fees that would take effect in March and April were too steep and sudden. As we discussed in my last post, these higher fees would be passed on to borrowers as higher interest rates or an increase in points paid.
Mr. Watt sated in an email, “I felt it was important to announce my intentions now because of the prospect that some lenders could start to price the proposed changes into the market well before the effective dates.”
San Diego Mortgage Brokers can attest to the fact that lenders were already making changes to pricing where lock extensions were concerned.
This announcement of the potential reversal or delay of the fees will be music to the ears of San Diego Mortgage Brokers and home buyers alike. These fee increases would have had a major impact on rates and the housing market when added to rates already increasing, the Fed taper, and the implementation of the Dodd-Frank Financial Reform regulations in 2014.
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