The cost of obtaining a loan just went up for a large number of borrowers. This week, Fannie Mae announced that it will double a fee that it introduced in December to compensate for the risks of doing business in what it calls an "adverse market."
Fannie Mae first introduced the "adverse market delivery charge" eight months ago. At that time, it was $250 per $100,000 borrowed. Lenders paid the fee and passed the buck on to borrowers, either as a charge or as a slightly higher rate.
Fannie just announced that it will be doubling the fee to $500 per $100,000 borrowed, or one-half of 1 percent. That translates (roughly) into an increase in the rate of one-eighth of a percentage point.
The higher fee will be added onto loans sold to Fannie beginning October 1. Because it takes time to sell a loan, lenders will start passing along the higher cost to borrowers almost immediately. Industry professionals say that Freddie Mac will follow Fannie's lead and introduce higher fees as well.
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