Fannie Mae (FNMA)

[navycmdr]

FHFA Likely To Leave G-Fees Unchanged. As for LLPAs?

By Paul Muolo [e-mail]

In early April, the Federal Housing Finance Agency is expected to issue its long-awaited proclamation on guaranty fees with the likely outcome of no change whatsoever in the base fees charged by the two government-sponsored enterprises, according to officials tracking the issue.
Few lenders are counting on a reduction in the current ?ongoing? GSE fee, which increased from 13 basis points in 2009 to 40 bps in 2013, according to the FHFA. But there could be relief on the upfront fee, or loan-level pricing adjustments, which averaged 11 bps in 2013. In Freddie?s world, these risk-based price adjustments are called post-settlement delivery fees.
Trade group officials, lobbyists and advisors interviewed by Inside Mortgage Finance believe LLPAs on high loan-to-value ratio loans will be dialed back.
?The levy on high LTVs is the one that bugged us the most,? said one trade group official who spoke under the condition his name not be used. For the full story, see Inside Mortgage Finance.