WASHINGTON (4/15/15)--The Federal Housing Finance Agency (FHFA) is likely announce its decision on fees that will be charged on Fannie Mae and Freddie Mac-backed mortgages, according to a report from Politico (April 13).
FHFA Director Mel Watt suspended an increase in fees when he took office in early 2014.
Fannie and Freddie collect the fees from lenders, known as guarantee fees or g-fees, and they are then passed onto the borrower. This is in exchange for Fannie and Freddie backing the bonds the loans are packaged into.
The FHFA accepted comments last year on potentially raising g-fees, to which CUNA was strongly opposed. CUNA believes the fees should not be raised, citing potential effects on lenders and consumers involved in the mortgage market.
According to the Politico report, it is unclear what direction the FHFA will take with its upcoming announcement, but there is an expectation among sources and analysts that some sort of fee reduction will be put into place.