Released: August 06, 2008

Fannie Mae raises fees

Source: Associated Press (LA Times) (Free Registration)

Fannie Mae on Tuesday outlined a new pricing policy aimed at helping the mortgage finance giant gird against increased credit risks and losses from home loans it buys from mortgage lenders, but the changes could end up squeezing out many borrowers.

Fannie Mae will double the fee it charges lenders and brokers to 0.50% from 0.25% beginning Oct. 1.

That fee will probably be passed on to borrowers, adding a quarter of a point to mortgage origination costs, said Steven Hops, president of the residential division of the California Mortgage Bankers Assn.

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