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 few years. The slow shift to decrease Fannie Mae and Freddie Mac’s role in the industry has been going on ever since the bailout of 2008. The adverse market fee, which was instituted in 2008 is still in effect for many states including Florida. The fees are probably a good sign however, as it indicates at stronger housing market that doesn’t require as much government intervention to keep afloat. The rebounding market means that Fannie Mae and Freddie Mac should be able to repay all their debt to the taxpayers by the end of the year.
Many analysts predict the market will only strengthen as a market on the rise will attract buyers who are on the fence. The buyer surplus should lead to a healthy market early in 2014. Those looking for a home loan in Coral Springs, Pompano Beach, Delray Beach or Boca Raton should consider called the mortgage loan experts at Ace Mortgage Loan Corporation. Letting a professional help you with your mortgage eliminates the headaches and confusion so you can worry about what matters.