In a letter to lenders, Fannie Mae says it is increasing the Adverse Market Delivery Charge from 0.25% to 0.50%, effective for whole loans purchased on or after October 1, and for mortgage loans delivered into mortgage-backed securities with issue dates on or after October 1. This charge applies to all mortgage loans delivered to Fannie Mae, whether under standard or negotiated terms.
According to Fannie Mae, these changes are intended to ‘better align pricing with credit risks, mitigate losses and support Fannie Mae's ability to provide a stable source of liquidity to lender partners.’
In addition, Fannie has updated its loan-level price adjustments (LLPAs) that apply to mortgage loans with certain risk characteristics. The changes include LLPA credits for certain mortgage loans with representative credit scores of 720 and greater and LTV ratios over 85%, decreased LLPAs for certain loans with representative credit scores of 620 and greater and LTV ratios over 85%, and increased LLPAs for certain mortgage loans with LTV ratios from 75% to 85%.
Source: Fannie Mae