Changes in Postsettlement Delivery Fees Announced in Guide Bulletin 2013-26
December 16, 2013
To advance the goal of attracting private capital back to the mortgage market, on December 9, 2013, the Federal Housing Finance Agency (FHFA) directed Freddie Mac and Fannie Mae (the GSEs) to make changes to guarantee fees (Gfees) on all single-family mortgages. In response to the directive, today Freddie Mac issued Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-26.
In addition, we are changing our buyup and buydown terms and language to better align with our current processes and usage.
Review today’s Bulletin for complete details on these changes.
Gfee Changes – Gfees will increase by 10 basis points (bps) on all single-family mortgages.
Market Condition Delivery Fees – To reflect steadily improving conditions in the nation’s housing markets, FHFA has directed the GSE’s to eliminate the 25 bps market condition delivery fee on certain single-family mortgages, except in four states.
To compensate for costs associated with certain state foreclosure timelines, the market condition fee will continue to be assessed for mortgaged premises in Connecticut, Florida, New Jersey, and New York. At least once a year FHFA plans to re-evaluate costs associated with state foreclosure timelines and, as appropriate, update the states where the market condition delivery fee will be applicable.
Indicator Score/Loan-to-Value (IS/LTV) Delivery Fee – The IS/LTV grid in Exhibit 19 – Postsettlement Delivery Fees will be updated to better align pricing with a borrower’s credit risk characteristics. This will be done by increasing certain delivery fees and expanding the IS/LTV grid to include more differentiated LTV ratios and FICO segments.
These changes also apply to Relief Refinance MortgagesSM. Relief Refinance Mortgages will continue to be subject to the caps specified in Exhibit 19.
Effective Dates – Except for Gfees, changes announced in this Bulletin are effective for mortgages with settlement dates on or after April 1, 2014.
Gfee changes will be effective for Guarantor and MultiLender Swap settlement dates on or after April 1, 2014 and commensurate changes will be implemented for all mortgages sold under our Cash program for commitments entered into on or after March 1, 2014.
Any planned increase in Gfee pricing already negotiated into your contract terms still applies above and beyond the changes announced in today’s Bulletin.