In response to declining home values, Freddie Mac is increasing delivery fees for certain high LTV and low FICO score mortgages, effective April 1.

Some wholesalers -- in response to Freddie's actions and similar changes implemented by Fannie Mae -- are implementing price increases, especially on condominium loans. One broker provided an e-mail from Taylor Bean & Whitaker that notes,

"As a result of recently announced Freddie Mac revised delivery fees, TB&W will implement new price adjustments on any loan locked on or after Feb. 4 with the issue of the rate sheet posted in the morning."

A TB&W account executive did not return a telephone call about the matter. The hikes in delivery fees ultimately will be paid for by the consumer who will see an increase in his closing costs.

Besides high LTV loans and low FICO scores, increases in delivery fees are coming on cash-out refis, condominiums, and certain ARMs.

A Freddie Mac spokesman said the GSE is increasing its fees because of "market dynamics."

The changes in fees are outlined in a Freddie bulletin dated Jan. 30.

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