Special Update: GSE Fee Increases to be Delayed

2017-12-20T17:34:12+00:00 December 23rd, 2013|Categories: Special Update|Tags: , , , , , , , |

Over the weekend, incoming FHFA Director Mel Watt stated that as soon as he is sworn in, he intends to delay the implementation of the loan-fee increases as were recently announced by outgoing Director Edward DeMarco.  It is believed that the delay will cover increases to both the guaranty fee and the loan level price adjustments.  It was not clear if Watt’s announcement meant he will also delay DeMarco’s planned elimination of the .25% Adverse Market Delivery Charge (for all but four states).  Watt said he needs time to “evaluate fully the rationale for the plan".

Special Update: LLPAs to Increase

2017-12-20T17:34:12+00:00 December 17th, 2013|Categories: Special Update|Tags: , , , , , , , |

On top of the previously announced 10 basis point increase in Fannie Mae and Freddie Mac guarantee fees,  Fannie and Freddie have published new Loan Level Price Adjustments (LLPAs) which will be effective April 1, 2014. The primary effect of the adjustments is to increase LTV/Credit Score LLPAs by 25 to 150 basis points.  Offsetting these increases somewhat, the 25 basis point Adverse Market Delivery Charge will be eliminated for all states except New York, New Jersey, Connecticut, and Florida.