U.S. mortgage guarantee fee changes to hike borrowing costs in 2014

Many U.S. homebuyers will likely pay more for mortgages next year due to a new policy established by the U.S. housing finance regulator that is raising the fees on government-backed loans. Fannie Mae (FNMA) and Freddie Mac (FMCC), the two taxpayer-owned mortgage finance companies, will increase their guarantee fees in 2014 as part of an effort to reduce their presence in the mortgage market. The Federal Housing Finance Agency announced the policy last week, and Fannie Mae and Freddie Mac laid out the specifics of how the new fees would work late on Monday. The move comes as FHFA acting Director Edward DeMarco finishes out his last days heading the agency.

    

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