Fannie Mae "pass through fee?"

I'm working with a couple of lenders on my new home; one is connected to the home builder, the other with my realtor. I shopped around a bit for an independent lender at the beginning of the process and didn't find anyone who seemed to offer much different or better than those two.

However, now I have one lender telling me one thing and the other directly contradicting that. I don't know enough about the industry to know who's right and who's wrong.

One lender tells me that EVERY mortgage written through Fannie/Freddie has a so-called "pass-through" fee of roughly $1000. (Don't know if that's a flat fee or if it varies based on the loan amount.) But the other lender says he's never heard of a fee called that or for that amount. Not only that, but there is no other fee by any name that even comes close in dollar amount to the $1000 that the second lender quoted.

Any thoughts?

1 Answer

There are loan level pricing adjustments on every loan Fannie Mae guarantees, and they vary based on credit scores, property type, down payment, etc. I have NEVER seen these shown as a separate charge on a GFE, they are typically just adjusted into the loan pricing and rate. If one lender is "lining out" those adjustments, their rate should be lower, or lender credit (if there is one) should be higher than their competitor's, since you're paying those Fannie adjustments separately. I have a hunch listing it separately is merely a ploy to up their origination fee, in hopes that borrowers won't question it if it's listed as "Fannie Mae" concerned. If it was truly a Fannie Mae charge, it would be shown as payable to Fannie Mae, NOT the lender/broker who provided the GFE, and I'll bet dollars to doughnuts it isn't. Tread carefully, sounds iffy at best to me.