Fannie Mae to Raise Fees, Lenders Will Pass Them On

San Francisco Chronicle (08/06/08); Colliver, Victoria
To provide a cushion against increasing mortgage losses, Fannie Mae boosted lender and broker fees to 0.5 percent from 0.25 percent. When the new fees go into effect on Oct. 1, Steve Hops of the California Mortgage Bankers Association expects borrowers to pay an additional 0.25 percentage point in origination fees. As a result, experts predict that borrowers extracting equity from their homes or refinancing will see higher costs, and borrowers with less than stellar credit will pay more for loans with lower down payments.