Fannie Mae-No Politics (FNMA)

[cooler_heads]

The consumer always pays one way or another. Look at FHA. Their rates are generally lower than conventional loans, but the borrower is paying for it with mortgage insurance for the life of the loan in most cases and a 1.75% funding fee that is either financed or paid at closing.

There is no funding fee for FnF, and mortgage insurance only remains until 20% equity is reached.

I could see a funding fee added to conventional loans or extended mortgage insurance in the future if FnF have to pay for an explicit guarantee.