FHFA Seeking Comments on G-Fees

The Federal Housing Finance Agency (FHFA) is seeking input on the guarantee fees that Freddie and Fannie charge lenders as well as their impact on up-front fees charged to borrowers. These 'guarantee fees' (or G-fees) are what government-sponsored enterprises (GSEs – AKA Freddie and Fannie) charge lenders. FHFA also wants input on concerns about implementation of the proposed increases to both the g-fee and up-front fees charged to borrowers (loan level pricing adjustments or LLPAs). The National Association of REALTORS® (NAR) has already filed its comments which include opposition to policies that raise fees so high that it directly impacts the cost and, ultimately, the eligibility of many homebuyers -and- FHFA policies that will result in billions of dollars of profits for the GSEs at the expense of home buying taxpayers noting that guarantee fees should protect taxpayers against losses, not increase profits. Additionally, NAR's comments stated that raising the costs of homeownership through increased G-fees and high LLPAs will not bring back the Private Label mortgage-backed Securities (PLS) market more quickly but rather it is likely to simply drive borrowers either to FHA or out of the market entirely. To read NAR's comment, go to: http://www.ksefocus.com/billdatabase/clientfiles/172/3/2118.pdf?om_rid=AAEH45&om_mid=_BUFw0LB88ZTQ$a&om_ntype=RESMonthly