Freddie Mac plans to impose an annual $7,500 surcharge on small seller/servicers starting Jan. 1.
“The low-activity fee will support our risk management efforts and offset the costs incurred to maintain seller/servicers, and monitor their continuing compliance with our eligibility requirements,” Freddie said in a recent bulletin.
To avoid the surcharge,
The American Bankers Association has already approached the GSE about the surcharge and it is trying find out how many institutions would be affected and the impact on their ability to remain a seller/servicer.
“Freddie Mac is willing to talk to affected companies,” said ABA senior vice president Bob Davis. But first, “we want to get an idea of the scope of the problem and its impact,” he said. “So if there is a need for a more global solution, we can start that discussion.”
The ABA executive noted that high-volume seller/servicers generally get better rates and margins than low-volume ones. And there are concerns the surcharge could drive smaller entities out of the secondary market.
