Driven by competitive market pressures, average guarantee fees charged by the government-sponsored enterprises for residential loans rose last year.
During 2016, average g-fees on single-family loans that were acquired or guaranteed by Fannie Mae and Freddie Mac worked out to 57 basis points.
That turned out to be a
2-basis-point improvement for all of the GSE’s loan products when compared to the average for the preceding year.
The findings were revealed
in a Federal Housing Finance Agency annual report to Congress. The report is required by the Housing and Economic Recovery Act of 2008.
“The decline in fees was due to competitive pressures between the enterprises, and less because of changes in the product type mix from 2015,” the report stated.
The average g-fee on 30-year fixed-rate loans was down 2 BPS to 61 BPS, while the fee
tumbled 4 BPS on 15-year fixed-rate mortgages to 37 BPS.
Extra-small lenders paid an average of 2 BPS less than extra-large lenders last year for overall g-fees, FHFA said.
