Day: December 11, 2013

Government Mortgage Companies Raising Fees Again

The two largest government-sponsored mortgage enterprises, Fannie Mae and Freddie Mac, are once more raising the fees they place on mortgage lenders in order to persuade private firms to enter back into the market. An increase in fees means that mortgages from Freddie Mac and Fannie Mae are more expensive. This makes room in the market for private firms who can compete by offering mortgages with lower fees. The overall goal of the move is to lessen Fannie Mae and Freddie Mac’s influence on the market so they require less taxpayer money to operate. The two companies have received more than $187 billion in aid from taxpayers since the housing market collapse in 2008. Raising the fees is nothing new as both principle and interest have doubled in the past…

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