Two days after being sworn in, Melvin Watt, director of the Federal Housing Finance Agency, already is reconsidering some of the actions taken by his predecessor.
As expected, the FHFA announced Wednesday that an increase in the guarantee fees charged on loans purchased by Fannie Mae and Freddie Mac would be delayed.
In early December, former acting FHFA director Edward DeMarco said that guarantee fees would increase by an average of 0.14 percent on a typical 30-year, fixed-rate mortgage and by 0.04 percent on a 15-year, fixed-rate mortgage. At the time DeMarco said the increases moved the pricing structure closer to what it would be if it was private capital taking on the mortgage credit risk.
The increases were expected to take effect March 1 for loans sold for cash and on April 1 for loans exchanged for mortgage-backed securities.
In a statement, Watt said he would undertake a thorough investigation of the fees and would give at least 120 days of any changes he makes. 'The implications for mortgage credit availability and how these changes might interact with the new qualified mortgage standards could be significant,' Watt said. 'I want to fully understand these implications before deciding whether to move forward with any adjustment to g-fee pricing.'
mepodmolik@tribune.com | Twitter @mepodmolik
Posted by Unknown on Wednesday, January 8, 2014 - Rating: 4.5
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