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Monday, September 19, 2011

Obama looks to increase Fannie and Freddie guarantee fees

As posted earlier.  And how is he going to do this?
Jim Vogel with FTN Financial studied the plan and found the administration wants a 10-basis point increase in guarantee fees at Fannie Mae and Freddie Mac by next year. He added, the "FHFA is going to look for creative ways to gradually raise fees in 2012 with a combo of fewer discounts, geographic differentiation, and a reduction of cross-product subsidies." The Treasury Department believes the change could result in savings of $28 billion over a period of 10 years.
This have impact on the mortgage of the loan obtain by the borrower, 10 basis points is .1% mortgage rate increase.  
Read it all

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