FHFA is seeking views on dramatic changes in the fees Fannie Mae and Freddie Mac would charge to guarantee mortgages sold for their MBS. Fees had been scheduled to rise in part due to hopes by the former acting director that this would reduce market reliance on the GSEs, but Director Watt has postponed any changes and solicited comment due to fears that higher fees could also reduce mortgage-credit availability, especially to higher-risk borrowers. The final balance of these fees will have a significant impact on mortgage-market structure given the huge role now played by Fannie Mae and Freddie Mac, as well as affect profitability for lenders and mortgage insurers. It could also affect the future of the GSEs based on the extent they compete with each other, recapitalize, or otherwise restructure their conservatorships.
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