A report from their regulator indicates guarantee fees have declined at Fannie Mae and Freddie Mac.
The average total “g-fee” charged by the government-controlled enterprises was 22 basis points last year, the Federal Housing Finance Agency reported today.
In 2008, the average fee was 25 BPS.
The decline was attributed to a significant improvement in the credit profile of the single-family loans they acquired.
FHFA noted that the share of 15-year loans increased. In addition, credit scores were higher, fewer loans had high loan-to-values and risk layering was used less.
