U.S. Fee Hikes on Vacation-Home Loans to Boost Long-Quiet Private MBS Market
- Fannie Mae, Freddie Mac to charge more to guarantee some loans
- Those mortgages may move to the private-label RMBS market
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Fannie Mae and Freddie Mac are making it more expensive for lenders to offer mortgages on vacation homes, a move that could give additional life to a risky corner of the bond market that fell dormant after the financial crisis.
Starting April 1, the two government-supported companies will begin charging more to guarantee loans for vacation homes as well as mortgages that are particularly large. Those guarantees help lenders like banks bundle the loans into bonds that can be readily sold and traded.