WASHINGTON (12/26/13)--Incoming Federal Housing Finance Agency Director Rep. Mel Watt (D-N.C.) will delay and re-examine planned guarantee fee hikes when he takes control of the agency next year, The Wall Street Journal
reported Dec. 20.
The FHFA early this month announced it would:
- Increase base guarantee fees for all mortgages by 10 basis points;
- Update the up-front guarantee fee grid to better align pricing with the credit risk characteristics of the borrower; and
- Eliminate the up-front 25 basis point adverse market fee, except in the four states whose foreclosure carrying costs are more than two standard deviations greater than the national average.
The FHFA said these fee structure changes would result in average guarantee fee increases of approximately 11 basis points based on loan purchases of Fannie Mae and Freddie Mac in the third quarter of 2013.
Watt was confirmed by the Senate on Dec. 10 and is scheduled to be sworn in on Jan. 6.