ARLINGTON, Va. — The March 2008 Flash report from NAFCU noted the additional surcharges that Fannie Mae and Freddie Mac implemented on the mortgages of lower-rated borrowers (credit scores below 680) who put down less than a 30% down and have terms longer than 15 years.

All lenders will be charged an additional 2%, resulting in higher closing costs or interest rates. But a majority of those NAFCU members polled (58%) said they would not pass the origination charges on to their own members, while 43% said they would. But less than half of respondents (42%) will hold the loans instead of charging the higher rate to members. Come June, Fannie and Freddie will raise the threshold of lower-rated borrowers to a credit score of 720 or below and raise the maximum surcharge to 2.75% and charge more fees to borrowers who put down less than a 40% down payment.

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