December 23rd, 2013
| Posted in News
by Keith Gumbinger
Incoming head of the Federal Housing Finance Agency Mel Watt may keep a slated increase in borrowing costs from hitting conforming loan borrowers for at least a while longer.
Increases in the loan-guarantee fees charged to lenders (aka “G-fees”) — a kind of insurance that the payments on the loan will be made — were slated to increase starting in March, and risk-based pricing elements (called Loan Level Pricing Adjustments) to compensate for low credit scores and/or low down payments by borrowers were scheduled to rise sharply for loans delivered to Fannie or Freddie on or after April 1.
As it can take 60 days or longer to get a loan closed these days — and with changes to required documentation and more expected to gum up the works in the early part of the year — these fees would probably have started to be seen in mortgage pricing in just a few weeks’ time.
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