Mortgage Daily Logo

Freddie Bumps Fees

Mortgage News

The Federal Home Loan Mortgage Corp.’s seller-servicers will soon face higher delivery fees.

In Freddie Mac Bulletin No. 2010-30, the secondary lender said it is revising its post-settlement delivery fees.

On loans with loan-to-values in excess of 85 percent and credit scores less than 620, the new delivery fee will be 3.25 percent. A credit score above 740, however, would cut the new fee to just 0.25 percent. With the 620 score, the fee drops to 0.50 percent when the LTV is less than 60 percent — though this pricing hasn’t changed.

A loan with a score of at least 740 and an LTV below 60 percent will receive a negative fee of 0.25 percent — just as before.

Nearly 50 different combinations offer a range of pricing between the two extremes. (read bulletin)

In addition, loans with secondary financing will be hit with new fees.

If the credit score is less than 720, the LTV is less than 65 percent and the total LTV doesn’t exceed 95 percent, then the fee is 0.50 percent. With LTVs up to 80 percent and TLTVs less than 95 percent, the fee is 1.00 percent.

But when credit scores are at least 720 with LTVs of no more than 65 percent and TLTVs up to 95 percent, the fee is just 0.25 percent.

“These delivery fee changes address the current increased risk and costs associated with certain higher loan-to-value mortgages,” the secondary lender explained. “The changes help to ensure that we are adequately compensated for the continued provision of essential liquidity to the mortgage market, and are able to continue our support for affordable lending while being diligent stewards of taxpayer funding.”

The updated pricing impacts loans with settlement dates on or after March 1, 2011 — though Freddie said pricing to borrowers doesn’t necessarily need to change since sellers control this function. In any event, the McLean, Va.-based company expects only a nominal impact on consumer affordability.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam