8/6/2008

Home buyers may see costs increase after Fannie Mae's decision to increase a fee that it charges lenders to buy mortgages or guarantee home-loan securities. The largest U.S. mortgage-finance company and rival Freddie Mac have been raising fees since last year to counter losses suffered in the worst housing slump in decades. "Everyone has to go to Fannie Mae and Freddie Mac right now, as there are very few alternatives," said consultant David Lykken of Mortgage Banking Solutions. The latest fee hike will "increase loan prices, and the housing market is going to get worse."

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Bloomberg, Reuters

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