1 year ago Chicago Tribune
High level of foreclosures helps means state doesn't meet criteria
From Chicago Tribune:
The Federal Housing Finance Agency is increasing the guarantee fees that Fannie Mae and Freddie Mac charge for mortgages they acquire, but Illinois will not be assessed an extra fee because of the high level of foreclosure activity in the state.
A year ago, the agency, which oversees Fannie and Freddie, proposed maintaining an extra guarantee fees in five states -- Illinois, Florida, Connecticut, New Jersey and New York -- that had extra-long foreclosure processing times. The FHFA said the extra ‘adverse market’ fees on newly acquired mortgages were necessary to cover the extra costs of managing the foreclosure process in some states. The fees were first put in place in all states in 2008.
On Monday, the FHFA announced it would increase all guarantee fees 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.
In addition, mortgages acquired in Florida, Connecticut, New Jersey and New York will carry an extra guarantee fee of 0.25 percent. Illinois, the agency said, does not meet the revised criteria for the extra fees.