FHFA Squelches High-Balance, Second Mortgages

As we anticipated, Acting FHFA Director Thompson has countered higher GSE loan limits with higher upfront pricing surcharges.  Although details of the new price schedule have yet to be posted, FHFA’s announcement indicates that up-front fees for high-balance loans could increase by as much as 75 basis points on primary homes unless the borrower is first time or other extenuating circumstances apply.