loans to change risk based pricing

Fees for home mortgages increase
For the first time since 2009, Fannie Mae and Freddie Mac are raising risk
fees charged to lenders on loans they buy for resale to investors. Fannie
and Freddie also are adding risk fees to more loans offered to borrowers
with exemplary credit. Although lenders could absorb the cost, most are
expected to add the fees to loan costs.


* To avoid a fee or to receive a discount, most borrowers will need
FICO scores of 740 or better and down payments of at least 25 percent.
* The fee increases likely will affect most loans with terms longer
than 15 years that are sent to Freddie beginning March 1, and to Fannie
beginning April 1.
* The most notable aspect of the fee increase is that the fees are
being added to more loans to borrowers with higher credit scores. With few
exceptions, risk fees previously hadn't applied to borrowers with FICO
scores of 740 or higher.

Read the full story



Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE
38750 Paseo Padre Pkwy Suite B3 / Fremont, CA 94536

CA DRE#: 01173766