WASHINGTON (AP) - Mortgage finance company Fannie Mae, seized by
the federal government last month, is canceling a fee hike for new
mortgages.
Fannie Mae says that a fee introduced last year will remain at
0.25 percent of the total loan amount. It had been scheduled to
rise to 0.5 percent on November 1st. For a $200,000 loan, that's a
savings of $500.
The Washington-based company first introduced the so-called
"adverse market delivery charge" in late 2007 as the housing
market slumped and the company tried to shore up its finances.
The decision comes nearly a month after the company, the largest
buyer and backer of U.S. mortgages, was seized by the federal
government along with its sibling company, Freddie Mac. The
companies' top executives were ousted as part of the takeover.
In recent months, Fannie and Freddie have hiked several fees for
borrowers without sterling credit, while asking for bigger down
payments. Real estate agents, mortgage brokers and homebuilders
have all complained that the moves were stifling the housing
market.