Freddie Mac to charge mortgage servicers for low activity
Freddie Mac is telling mortgage servicers to expect a $7,500 fee for not selling at least $5 million in unpaid principal balance per year to the government-sponsored enterprise.
These are the mortgages Freddie uses as collateral for bond issuance.
Freddie Mac mortgage servicers Freddie Mac with an aggregate UPB of less that $25 million will also be assessed the fee.
The fee is new to Freddie Mac and far outstrips similar fees at Fannie Mae.
"The low activity fee will support our risk management efforts and offset the costs incurred to maintain Seller/Servicers, and monitor their continuing compliance with our eligibility requirements," Freddie Mac said in its latest Seller/Servicer requirements.
The fees will be levied based on 2013 performance, with servicers getting the bill in January 2014.
Under the subhead "Maintaining Lender Eligibilty," qualified lenders with Fannie Mae get fined if they do not meet certain thresholds.
A lender must deliver a minimum of $2 million in mortgage loans, as whole loans or in MBS pools, or act as the servicer for a portfolio of Fannie Mae loans with a minimum unpaid principal balance of $25 million.
Third, an elible lender can pay a minimum of $5,000 of DO and DU fees to Fannie Mae.
Lenders that do not satisfy one of the above criteria get an inactivity fee of $1,000 for that calendar year.
Failure to pay results in deactivation, with a $2,500 reactivation fee.