FHFA to Set Guidelines on Mortgage Fees

The Federal Housing Finance Agency (FAHFA) has announced that it will propose a new framework early next year for how mortgage giants Fannie Mae and Freddie Mac will set their so-called G-fees (Guarantee Fees). These are the fees that the GSEs charge lenders, and some housing analysts have been concerned that a rise in G-fees could prove more costly to consumers, since lenders likely would pass the higher costs down to buyers.

In January, FHFA stopped plans to raise G-fees by 10 basis points. FHFA Director Mel Watt said he wanted more time to review the proposal and seek public comment. In fact, Watt defended his cautious approach to raise the G-fees at a recent meeting of the Senate Banking, Housing and Urban Affairs Committee and reporting same at a forum in New Orleans as part of the Fall Business Meetings of the National Association of REALTORS® (NAR).

Watt also said that in early December, Fannie Mae and Freddie Mac will release more details on additional requirements borrowers must meet to make a 3 percent down payment on a mortgage. In monitoring the issue,  SAMCAR has stated its opposition to policies that raise fees so high that it directly impacts the cost and, ultimately, the eligibility of many homebuyers. In addition, we also opposed FHFA policies that will result in billions of dollars of profits for the Enterprises at the expense of home buying taxpayers noting that guarantee fees should protect taxpayers against losses, not increase profits.