The new fees, known as loan-level price adjustments, don’t take effect until April 1, but already many lenders have begun passing the increases on to customers, according to a report from Dow Jones Newswires. This is because it may take a number of months for loans originated now to be sold to Fannie.
“It’s not so much that this is really tightening significantly, it’s that it’s getting tighter. It’s not getting easier,” Cameron Findlay, chief economist for LendingTree, an online marketplace that connects consumers to lenders, told the news source. “Consumers are looking for some relief, and what they’re getting is the opposite at this point. They’re getting ‘Sorry, there’s less that we can do for you than even a year ago.'”
Even consumers with relatively strong credit scores will see fees increase soon if they haven’t already, the report said. By April 1, consumers with ratings of 700, who would have paid fees totaling about $800 on a $200,000 loan in the past, will now have to pay $1,600.
Fannie has faced heavy losses to default and delinquency during the economic downturn, and is now operating under a government mandate to shore up deficits to save the government money.