Currently, borrowers seeking loans backed by Fannie Mae and Freddie Mac are set to pay higher upfront fees starting April 1. The fees are meant to help safeguard banks against risky borrowers and were ordered by the Federal Housing Finance Agency (FHFA) earlier in December. Experts, however, say that it will add thousands of dollars to the cost of mortgages and will hit borrowers with imperfect credit histories especially hard.
On Friday, the incoming chief of the FHFA, Mel Watt, said he intends to postpone the fees — and perhaps even cancel them — until more analysis is done. The mortgage industry has been bracing for 2014, as it is believed that prices will rise in the upcoming year.