Realtors Protest Increase in Loan Fees by Fannie Mae
Founded in 1908, the National Association of Realtors (NAR) is North America’s largest trade association. The NAR governs local Multiple Listing Services (MLS) and owns and maintains Realtor.com — a convenient website to find St. Louis real estate listings.
More importantly, the National Association of Realtors works hard to advocate for homebuyers and sellers. The NAR is the third largest donor to political campaigns, donating over $30M since 1990.
Recently, the NAR has been protesting an increase in loan fees by Fannie Mae and Freddie Mac, the two government-back lending institutions that purchase and secure home mortgages.
In an update posted on one of its Web sites Monday, Fannie raised some of the fees it charges to lenders when it buys or guarantees certain types of mortgages. The fees generally are passed on to consumers.
For instance, for a 30-year fixed-rate mortgage to buy a condominium, allowing for initial payments of interest only and with a 20% down payment, a borrower with a credit score of 690 will pay fees totaling 3.25% of the loan amount for mortgages Fannie purchases after April 1, up from 1.25%. This is a significant increase.
The NAR is desperately trying to encourage the financial sector to make home buying more attractive. Through the protest, the NAR hopes that Fannie and Freddie will reconsider this discouraging move.
Click here for more information about how Fannie Mae affects the real estate market in St. Louis.
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Category : First Time Homebuyers in St. Louis &Lenders in St. Louis &Mortgages St. Louis &St. Louis Real Estate Buyers
