WASHINGTON -- Fannie Mae has canceled the increase in adverse market delivery charges scheduled to go into effect next month.
President and CEO Herb Allison said in a written statement that the market has changed substantially since the GSE announced the pricing increase in August. He also said Fannie expects that the cancellation of the additional 0.25% charge will be passed on to borrowers who have not yet closed on their mortgage loans. The decision could mean a savings of $500 to consumers who close on a $200,000 loan.
Fannie's reversal comes less than two months after the GSE doubled its adverse market delivery charge. Fannie said in August--before the Sept. 7 conservatorship--that it was increasing the charge to 0.50% from 0.25% because of credit risks.
