Higher Mortgage Fees Proposed in 5 States
September 20, 2012
The Federal Housing Finance Agency is proposing charging more for mortgages in Connecticut, Florida, Illinois, New Jersey, and New York because it takes longer in these states for banks to foreclose.
The rationale is that the longer it takes a lender to repossess the collateral behind a mortgage, the higher the potential costs.
Although the fees Fannie Mae and Freddie Mac charge would only rise by 0.15 to 0.3 percentage point of the loan amount, creating state-level mortgage pricing could set a new precedent.
Source: "Higher Mortgage Fees Proposed in Five States," The Wall Street Journal (Sept. 20, 2012)
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Updated: June 18, 2018