Breaking News – New Fannie Mae Changes

Fannie Mae Raises Lender Fees, Releases Retained

Attorney List

Earlier this week, Fannie Mae announced that it is increasing the fees it charges lenders for purchasing their mortgages and making adjustments to its pricing structure for home-loan securities. The government-sponsored enterprise (GSE) said these changes, which are effective October 1, will better align its pricing with credit risks, help to mitigate losses, and support its ability to provide a stable source of liquidity to lender partners. Fannie Mae will raise its Adverse Market Delivery Charge, a fee that applies to all mortgages that it finances, from 0.25 percent to 0.5 percent. The company has also issued updates to its standard loan pricing structure, or loan level price adjustments (LLPAs), based on down payment and borrower credit score criteria. Costs will decrease on loans made to borrowers with credit scores over 620 and a loan-to-value (LTV) ratio of more than 85 percent. Fees will increase for mortgage loans with LTV ratios below 85 percent. To view Fannie Mae’s announcement to lenders and updated LLPA grids, click here . In additional company news, Fannie Mae released its updated retained attorney list today. The list, effective October 1, 2008, was compiled following a rigorous application and evaluation process, and reflects the firms that Fannie Mae considers to be the foremost in the industry. For Fannie Mae’s full list of attorneys by state jurisdiction, click here .

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