GSE Fee Changes Too Small to Notice?

Changes to Fannie Mae and Freddie Mac’s fee structure were announced by the
Federal Housing Finance Agency (FHFA) on Friday.  But in the words of The Wall Street Journal, “the changes are so small that few
borrowers will notice

Modifications to the Loan Level Price Adjustments (LLPA) will result mainly
in slightly lower fees to borrowers with weaker credit.  FHFA said it was directing the government
sponsored enterprises (GSEs) to eliminate the 25 basis point adverse market fee
they implemented in March 2008 and replace if “with targeted increases in
guarantee fees to address various risk-based and access-to-credit


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