McLEAN, Va. – Freddie Mac followed Fannie Mae Friday and announced it is eliminating a so-called adverse market charge it planned to assess on mortgages acquired in distressed housing markets.
Both companies had planned to double the charges, assessed for the first time earlier this year, to 0.50 basis points on Nov. 1, a cost that lenders would have to pass on to borrowers. For a $200,000 loan that amounts to $500.
Fannie Mae dropped the charge on Thursday.
Freddie said, however, it will raise fees next year for riskier loans, including mortgages that allow interest-only payments for the first few years, and will require higher credit scores for so-called piggyback loans that allow borrowers to make smaller down payments by taking out two mortgages.
The decisions comes a month after the two secondary mortgage market giants were taken over by the federal government.
