Recent Senate Announcement Could Mean an Increase in Mortgage Fees
Sources report that the Senate has approved a permanent increase in fees attached to mortgages backed by government-sponsored enterprises including Fannie Mae, Freddie Mac and the Federal Housing Administration. Currently, nearly 9 of 10 new homes are backed by the GSEs.
The new fee will depend on the amount of the loan sought, and one official suggests it would amount to nearly $15 a month per every $200,000. Though it doesn’t seem like a big difference, sources say the amount will add up quickly.
The fee will apply to new mortgages and new refinances and is intended to encourage more homeowners to turn to the private market versus loans backed by the GSEs. The weak housing market and the large number of foreclosures have lead many to seek mortgages from FHA, Fannie and Freddie.
The increase was also introduced to pay for the nearly $33 billion package to extend a 2 percentage point payroll tax cut for another two months, which the Obama administration expects will benefit 160 million people.
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