Skip to content

Fannie Mae loans to get a bit more expensive in the spring

January 12, 2011

As if the recent volatility was not causing enough problems, Fannie Mae recently announced that they will apply Loan Level Price Adjustments to many loans that they purchase.  These adjustments will increase the overall cost of borrowing.  Surprisingly, these changes will affect the vast majority of loans, even for borrowers with credit scores in excess of 800.  I wish that I could say that the market would take these changes in stride, but with added costs ranging from 0.25% to 0.5%, I can only guess that this will make it more difficult for buyers to obtain loans and sellers to find qualified borrowers.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: