Fannie Mae announced that it would cancel the planned increase in its adverse market delivery charge.
The 25-basis-point rise was scheduled to go into effect for whole loan purchases and mortgage loans delivered into MBS with issue dates on or after Nov. 1.
"Our expectation is that this decision to forgo the across-the-board increase in our delivery charges will be passed on to borrowers in the form of lower mortgage costs," said president and CEO Herb Allison. "The market has changed substantially since we announced this increase to our pricing in early August. We are evaluating all of our risk-management, underwriting guidelines, pricing and costs in light of these changing conditions. As we move forward, we will seek to balance our responsibility to provide the most market support possible with our obligation to protect the company and its many stakeholders, including taxpayers."
The GSE said its expectation was that lenders would waive the added 0.25 percent charge for borrowers who have not yet closed on their mortgages.