On January 5, the Federal Housing Finance Agency (FHFA) announced targeted increases to government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac’s upfront fees for certain high balance loans and second home loans. The new pricing framework will take effect April 1, 2022, to minimize market and pipeline disruption. In a statement, FHFA Acting Director Sandra Thompson said the fee increases are another step FHFA is taking to both strengthen the GSEs’ safety and soundness and ensure access to credit for first-time homebuyers and low-income borrowers.
In an article explaining the impact of the fees, National Mortgage News cited SFA CEO Michael Bright, who stated “We have seen the private-label securities market meet demand, and the private market can provide credit to borrowers affected by this change. In fact, SFA research has demonstrated the capacity of the private-label securities market to efficiently backfill markets outside of the GSEs’ core mission.”