MBA Expresses 'Deep Concern' Over Proposed GSE Delivery Fees
The Mortgage Bankers Association said late last week that it has concerns regarding plans by both GSEs to introduce broad delivery fees tied to poor mortgage market conditions. MBA chairman Kieran Quinn, in a letter to the CEOs of both Fannie Mae and Freddie Mac, said he was "deeply concerned that these new fees have the potential to limit homeownership prospects for affected borrowers." Housing Wire first broke the news of a so-called "adverse market delivery fee" at Fannie Mae on December 6, who said it will charge an upfront fee of 25 basis points starting on March 1, 2008 on loans it purchases. Freddie Mac said on December 11 that it would follow suit with its own "market condition delivery fee." The National Association of Homebuilders responded to the announcement by Fannie last week by calling the planned fee a "broad tax on homeownership." In his letter, the MBA's Quinn sounds a similar alarm, saying "these recent pricing changes will drive up the cost of homeownership for all borrowers." Here's the copy of Quinn's letter to Freddie Mac; and here's the copy of Quinn's letter to Fannie Mae. For more information, visit http://www.mortgagebankers.org.