Freddie Exits NINA, Hikes Certain Fees

Freddie Mac has decided to immediately exit the "no-income, no-asset" verification loan market and is hiking delivery fees on other nonconforming loan types.According to a seller/servicer bulletin dated Nov. 15, it is also hiking "delivery" fees on mortgages with loan-to-value ratios above 70% and FICO scores below 680. A loan with a FICO score below 620 will cost a seller/servicer 200 basis points. (This affects loans that settle on or after March 1, 2008.) "In response to deteriorating trends in credit quality, today we are announcing that we are immediately discontinuing the purchase of no income/no asset (NINA) mortgages and similar no documentation loans that we purchase on a negotiated basis," Freddie says in the seller/servicer bulletin. The secondary-market giant said it has also made underwriting changes on 80-10-10 loans. Freddie Mac can be found on the Web at http://www.freddiemac.com.