Freddie Cuts Jumbo Fees, Drops Liar Loans

Freddie Mac is reducing its delivery fees on jumbo mortgages and is discontinuing purchases of stated-income loans. Freddie is eliminating the extra delivery fees that it charged on fixed-rate purchase and "no cash-out" refinancings jumbo mortgages, beginning Jan. 2, when the maximum loan limit for the government sponsored enterprise is scheduled to drop from $729,750 to $625,000. The GSE also is reducing its delivery fees on fixed-rate, cash-out refinancings of jumbo loans, according to a Freddie Bulletin to seller/servicers. Fannie Mae and Freddie began purchasing jumbo loans earlier this year when Congress the raised the maximum loan limit from $417,000 to $729,750 as part of an economic stimulus bill. Freddie also used the bulletin to tell lenders that is "discontinuing the purchase of all mortgages originated with stated income and stated assets, including Loan Prospector Accept Plus Mortgages."