The US Federal Housing and Finance Agency, which oversees mortgage giants Freddie Mac and Fannie Mae, has postponed new mortgage fees that were scheduled to take effect in 2014. The fees are meant to safeguard banks against defaulting borrowers.
Incoming FHFA chief Mel Watt wants more analysis done, to see how the substantial fees and resulting increase in mortgage prices would impact Freddie Mac, Fannie Mae, and “the availability of credit.” There is a concern that increased borrowing costs would substantially impact individual borrowers. Further, Fannie and Freddie have had record profits in recent years, so it is not clear that they need further cushioning. Read the Original CNN Money Article Here: U.S. postpones 2014 hike in mortgage fees
