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Fannie Mae Guarantee-Fee Rise Will Be Delayed by FHFA Under Watt

Fannie Mae Guarantee-Fee Rise Will Be Delayed by FHFA Under Watt

U.S. Representative Mel Watt, who will leave Congress to become regulator of Fannie Mae and Freddie Mac (FMCC:US), said he will delay a planned increase in the fees the U.S.-owned companies charge to guarantee mortgages.

Watt, who is scheduled to be sworn in as director of the Federal Housing Finance Agency on Jan. 6, said in a statement yesterday that he needs time to evaluate fee increases announced this month by Edward J. DeMarco, the agency’s acting chief.

The announcement by Watt follows complaints by mortgage bankers and other housing-industry participants that the higher fees set to take effect in March and April were too steep and sudden. Such increases typically are passed on to borrowers in the form of higher interest rates.

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