Tuesday, September 18, 2012

Warning: Mortgage Fee Hikes Ahead? (mortgage rates Los Angeles)


A new report expected this week may be a new factor affecting borrowers concerned with Los Angeles mortgage rates. Federal housing regulators are expected to release a report that may reveal new mortgage fees ahead. 
The Federal Housing Finance Agency may be modifying the way it calculates fees that guarantee credit risk to depend on state-specific default risk. Last month Fannie Mae and Freddie Mac increased the guarantee fee they charge to investors that back the bonds they sell. The fee went up by an average of 10 points.  The fee changes are intended to limit the credit risk associated with mortgages, after costing taxpayers $188 billion. 
The FHFA is releasing a study and seeking input about the possibility of imposing upfront fees in states where risk is higher than the national average. The fee is designed to equalize regional differences in the pricing of mortgage guarantees. This revision, if implemented, will mark a major change in the way the guarantee fee works.

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