Skip to main content
Menu Icon

InfoBytes Blog

Financial Services Law Insights and Observations

Fannie Mae and Freddie Mac Announce Guaranty Fee Increase

Freddie Mac Fannie Mae


On December 30, Fannie Mae and Freddie Mac announced a 10 basis point increase of the guaranty fee charged for all mortgages delivered for securitization on or after April 1, 2012. The credit fee on whole loans will also increase by the same amount. The increases are required by the Temporary Payroll Tax Cut Continuation Act enacted on December 23, 2011, and a subsequent directive from the Federal Housing Finance Agency. The Act uses the increase in fees to cover fiscal costs associated with a two-month extension of a payroll tax reduction.

Click here for a copy of the Freddie Mac announcement; click here for the Fannie Mae announcement.