Friday, January 3, 2014

Some Fees May Not Go Up Just Yet!

FHFA new director to be sworn in, Mel Watt, announced that he is delaying the anticipated increase in the guarantee fees!

Well, he likely won't hold them off forever, but that means the cost of a home loan won't be going up by their fees as soon as expected!

They were originally to have these new fee hikes go into place in the spring. Charging additional fees to the judicial states of Florida, New York, New Jersey, and Connecticut as they were the ones with the huge costs for the foreclosure activity.

Watt says he wants to really evaluate the full reasoning for the rate increase plan and the GSE's risk in doing so. He wants to figure out what the increases will do to credit cost and availability.

He wanted to mention this plan to delay so that lenders didn't start to price the announced changes way in advance of the actual effective dates.

So, stay tuned. If you're looking at a home loan, do it sooner than later!

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