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Government-Backed Mortgage Fee Changes Take Effect

Adjustments to the upfront fees on mortgage loans guaranteed by Fannie Mae and Freddie Mac take effect May 1. So reports CBS News.

Fannie Mae2 150x150The changes, involving Loan Level Price Adjustments, generally mean that fees will go down for borrowers with lower credit scores and rise for borrowers with higher credit scores.

Calling a backlash against the changes “a fundamental misunderstanding,” Sandra Thompson, director of the Federal Housing Finance Association, said in a news release, “Higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less.”

Read the full article from CBS News.

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