Barely two weeks after President Obama proposed expanding a government mortgage refinance program in order to make millions more borrowers eligible, the man who would have to guide such a program announced yet another barrier to entry.
The President's plan would work through Fannie Mae and Freddie Mac and their existing Home Affordable Refinance Program (HARP), by potentially eliminating loan-to-value ratios and lowering fees. But fees at Fannie and Freddie are about to go up, according to their conservator, the Federal Housing Finance Agency (FHFA).
"A logical next step in conservatorship is to continue down the path already started of gradually increasing guarantee fee pricing to better reflect that which would be anticipated in a private, competitive market," acting FHFA director Ed DeMarco told an audience of mortgage bankers today day in Raleigh, NC.