Fannie, Freddie Guarantee Fee Raised To Spur Private Lending

Law360, New York (August 31, 2012, 1:41 PM EDT) -- In a bid to boost private mortgage lending, the Federal Housing Finance Agency — which oversees Fannie Mae and Freddie Mac — announced Friday that the two mortgage giants would raise the fee they charge banks to guarantee mortgages by 10 basis points.

The FHFA said that the move, which will take effect in November, is aimed at reducing Fannie Mae and Freddie Mac's presence in the mortgage market, where they currently own or guarantee approximately 60 percent of home loans in the U.S.

“These changes...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.