Special Update: G-Fee Increases – Update 12.29.11

                                                                                                                                                                                               FHFA has answered a couple of the questions we raised on Tuesday regarding the Congressionally mandated increase in Fannie Mae and Freddie Mac guarantee fees (G-fees).  Effective April 1st all G-fees charged by Fannie and Freddie will be increased by 10 basis points.   In addition, FHFA said that during the first part of 2012 they will determine whether the new law will require additional increases in the G-fees.  

Since G-fees are paid from the interest on a loan, this increase will cause mortgage rates on loans going into Fannie and Freddie mortgage-backed securities after April 1st to rise by a similar amount.