Paying for Foreclosure Delays

As the New York Times reports, everything comes with a price.  That includes new mortgage loans.  The price is higher fees because of the high foreclosure rate. 

The Federal Housing Finance Agency announced last month that, because the stress in housing markets has eased, it was eliminating the across-the-board adverse-market fee instituted in 2008 to help cover the costs of high rates of delinquencies. The fee, applicable to all mortgages bought by Fannie Mae or Freddie Mac, is 25 basis points, or 0.25 percent of the mortgage loan amount.

Yet, fee remains in effect in New Jersey and New York.

At the end of the day, the fee is supposed to soften the cost of foreclosures (to lenders) by creating more revenue when the loan is booked.  The report, linked below doesn't really offer any solutions to the problem.

The New York Times report is found at Paying for Foreclosure Delays - NYTimes.com and the The Federal Housing Finance Agency is here.

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