Fannie/Freddie Fees on Increase Posted by AVCU on 12:58 PM

Freddie Mac and Fannie Mae have announced increases in loan guarantee fees beginning April 1, 2012 under direction of the Federal Housing Finance Agency. FHA is charged with implementing a congressionally mandated increase. Legislation passed by Congress in December mandates at least a 10 basis point increase in the average guarantee fee in 2012. The payroll tax cut extension bill targeted a 10-year increase in Fannie and Freddie guarantee fees to cover most costs of the legislation that extended the payroll tax reduction and unemployment benefits for two months. The bill also mandates that adjustments be made to the guarantee fees so all lenders pay the same fee.