Tag Archives: Fannie

The Federal Housing Finance Agency (FHFA) announced Monday that mortgage giants Fannie Mae and Freddie Mac will create a new joint company for securitizing home loans. The move is viewed as a step toward shrinking the government’s role in the mortgage market. The government-sponsored enterprises, which started receiving taxpayer bailout money in 2008, help finance about two-thirds of U.S. mortgages. Edward DeMarco, the acting director of FHFA, says he wants to shrink Fannie and Freddie’s footprint in order to reduce the risks to taxpayers. “The overarching goal is to create […]

The Federal Housing Finance Agency (FHFA) announced that mortgage giants Fannie Mae and Freddie Mac will increase — by an average of 10 basis points — the fees they charge lenders to guarantee loans. The fee increases are expected to be passed along to borrowers, possibly with higher interest rates, Bloomberg reports. However, banking trade groups say any increases should be minimal and shouldn’t hurt mortgage lending. For example, a rise of 10 basis points could potentially cost a borrower with a $200,000 mortgage about $4,000 over the term of […]