By Nick Timiraos | The Wall Street Journal
Fannie and Freddie, which currently back about two-thirds of new mortgages, are set to charge higher fees, a move that will affect rates for many new borrowers. Here, a housing development in Oakland, Calif. Getty Images
Consumers can expect to pay more to get a mortgage next year, the result of changes meant to reduce the role that Fannie Mae FNMA -1.45% and Freddie Mac FMCC +0.78% play in the market.
The mortgage giants said late Monday that, at the direction of their regulator, they will charge higher fees on loans to borrowers who don’t make large down payments or don’t have high credit scores—a group that represents a large share of home buyers. Such fees are typically passed along to borrowers, resulting in higher mortgage rates.
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