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FHFA: G-Fees to Remain at Current Levels
On April 17, FHFA released the results of its Fannie Mae and Freddie Mac Guarantee Fee Review. The FHFA’s review considered the public responses to its June 2014 request for input, and according to the agency’s fact sheet, sought to reach a balance of (i) ensuring the safety and soundness of Fannie Mae and Freddie Mac; and (ii) fostering a liquid national housing market. Because the analysis of the fees showed that “the current average level of guarantee fees appropriately reflects the current costs and risks associated with providing [Fannie and Freddie’s] credit guarantee,” the agency will make only minor adjustments to the fees and does not expect the changes to impact Fannie and Freddie’s loan volume. The fee adjustments will fall into two categories: (i) elimination of the 25 basis point upfront adverse market charge; and (ii) addition of small fee increases for certain loans with risk-layering attributes, such as loans with secondary financing or investment properties.
Comment Period For FHFA G-Fee Review Extended
On July 29, the FHFA extended the comment period on its request for input regarding potential changes to guarantee fees that Fannie Mae and Freddie Mac charge lenders. Comments originally were due by August 4, 2014, but now will be accepted through September 8, 2014.
FHFA Requests Comments On Guarantee Fees
On June 5, the FHFA issued a request for input regarding its proposed increases to guarantee fees (g-fees) that Fannie Mae and Freddie Mac charge lenders. Earlier this year, FHFA Director Mel Watt halted g-fee changes announced by the agency under Mr. Watt’s predecessor. Those changes would have (i) raised the base g-fee for all mortgages by 10 basis points; (ii) adjusted up-front fees charged to borrowers in different risk categories; and (iii) suspended the up-front 25 basis point adverse market fee in all but four states. The FHFA now poses more than a dozen questions for commenters to consider and respond to as the FHFA assesses future policies regarding g-fees. Comments are due by August 4, 2014.