Senate Banking Committee chairman Richard Shelby, R-Ala., is looking into complaints from small lenders that Fannie Mae and Freddie Mac charge them high loan guarantee-fees, while offering discounts to large lenders.At a committee hearing, Sen. Shelby said this business practice places small lenders at a disadvantage and it could be contributing to greater concentration in the industry. "A lot of people are concerned that these business practices may be pushing the mortgage and lending industry toward even more concentration," the chairman said. When asked by reporters if he believes g-fees should be the same for all lenders, Sen. Shelby said, "We will probably explore that some more." Lenders pay g-fees to Fannie and Freddie to securitize loans. The cost is passed on to borrowers.

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