As if things weren’t already tough enough in the housing market the mortgage purchasing giants Fannie Mae and Freddie Mac are imposing new fees on mortgages they guarantee. This is the absolute worst time they could do this.
Let’s think about this for a moment – at a time when housing prices are declining and lending standards are tightening – which means less borrowers to buy houses – we decide to impose yet another obstacle to the home buying process – higher fees (which will translate into higher rates).
Whoever the geniuses are at the quasi-government agencies that came up with this idea should be fired – this will only make things worse for their existing stockpile of loans as the collateral backing them will fall further in value.
Fannie and Fredie are the new Grinches That Stole Christmas.
Scott Dauenhauer, CFP, MSFP, AIF