We were alerted this morning that Fannie Mae and Freddie Mac will be worsening their base pricing by approximately .50 effective for loans with settlement dates on or after April 1, 2012. This change is a result of the Temporary Payroll Tax Cut Continuation Act of 2011 which directs Fannie and Freddie to increase their fees. Both agencies said that they will monitor these changes and they may announce plans for additional pricing changes in the future.
While April 1 is over 2 ½ months away, keep in mind that banks and mortgage companies be incorporating these increases into their pricing modules at various speeds over the next 30 days. SO…. If you have a buyer that is wondering whether or not to lock in and protect an interest rate now or float it for a while to see if it will improve – use this knowledge the help them make an informed decision.
This change will be applied to Conventional loans and High Balance loans only. These changes do not apply to Jumbo, FHA, VA or USDA products.
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