Freddie Mac Add's Packaging Fee

Freddie Mac today matched a move by Fannie Mae last week in charging an additional fee of 0.25 percent for packaging mortgages into securities with a company guarantee. The increase, prompted by ``continued deterioration in the mortgage market,'' will apply to contracts with settlement dates on or after March 9, the company said in a statement on its Web site.

The increase ``is a broad tax on homeownership that ultimately will be passed along to consumers,'' National Association of Home Builders Chief Executive Officer Jerry Howard said in a Dec. 7 statement after the fee announcement. ``This is the exact opposite of what needs to be done'' to revive the housing market.

Posted Wednesday Dec 12

(12/12/07 12:43PM) — Terry Westbrook ~ Realtor(R) Grand Rapids Mi Ada/Cascade Real Estate

That is exactly what makes buyers distrust Mortgage companies. Fees that are added on. It seems to me the interest rate is to cover cost and charges for lending the money and if lenders would wrap it all into the rate instead of having the variety of fees and charges that differ from lender to lender it might make it easier for the consumer to make a decision. I'm just ranting Thanks for the info.

(12/12/07 01:23PM) — David Conaway

This is a servicing fee Freddie is now charging. Fannie has added it also. Both will charge it to the lender or bank, who will kindly pass it along to the borrower. Ranting is fine.