The federal regulator for the country’s two largest mortgage finance providers said Fannie Mae and Freddie Mac are expected to gradually increase the fees they charge lenders in the next year, Reuters reported on September 19, 2011. Although the two firms do not directly make loans, they provide financing to banks and lenders by purchasing mortgages and either keeping them on their books or packaging them for sale to investors which pay Fannie and Freddie a “guarantee fee” when they buy mortgages. Edward DeMarco, acting director of the Federal Housing Finance Agency, told Reuters those “guarantee fees” would be increased in order to lessen the companies’ long-term exposure to risk.
The White House has supported increasing the guarantee fees to help reduce “the government’s footprint in the U.S. housing finance system and attract more private capital to the mortgage market,” according to Reuters. President Barack Obama’s budget plan estimated that an increase in guarantee fees at Fannie and Freddie would produce projected savings of $28 billion over 10 years. DeMarco said the changes in guarantee fees may include increased costs for riskier loans and for mortgages in states with more stringent foreclosure laws.
You can imagine whom those new fees will eventually get passed on to, which is why if you are currently facing foreclosure, now is the time to seriously consider filing for bankruptcy . Our Chicago bankruptcy attorneys can assist you with a bankruptcy means test and answer all of your questions regarding Chapter 7 or Chapter 13 processes. The only way you can worsen your situation is to do nothing about it, so you have nothing to lose by contacting our firm today for a free consultation.
Benjamin Brand Services – Chicago bankruptcy lawyers