Fannie Mae’s and Freddie Mac’s new fee has roiled the mortgage industry. It could be just a taste of what is to come as the two giants’ role in the housing market evolves. The 0.5-percentage-point “adverse market” fee approved by their regulator and implemented by Fannie and Freddie last week will be applied to what the government-sponsored entities pay upfront to acquire many refinancing loans. Though limited—it won’t apply to home purchases, for example—the fee still may hit some mortgage lenders, notably those that have...

Source: Wall Street Journal August 18, 2020 11:03 UTC