The Federal Housing Finance Agency said today it will increase fees for certain Fannie Mae and Freddie Mac high-balance loans and second home loans starting on April 1. Fees for high-balance loans will increase between 0.25% and 0.75%, and second home loan fees will rise between 1.125% and 3.875%, with both types tiered by loan-to-value ratio, FHFA said.
The new fees will not be applicable to first time homebuyers in high-cost areas with incomes at or below 100% of area median income, FHFA said. The increased fees will also not be applied to affordable housing programs such as HomeReady, Home Possible, HFA Preferred and HFA Advantage.
The new fees are part of FHFA’s previously announced updated 2022 performance goals for Fannie and Freddie and are expected to improve their regulatory capital positions over time, FHFA said.