FHFA says g-fees are at appropriate levels, will continue to monitor
April 17, 2015
WASHINGTON (4/20/15)--Current guarantee fees charges by Fannie Mae and Freddie Mac are appropriate, according to a recently completed review by the Federal Housing Finance Agency (FHFA).
The agency also determines some modest adjustments to upfront guarantee fees are also appropriate.
CUNA was strongly opposed to any raising of the fees, otherwise known as g-fees, citing potential effects on lenders and consumers involved in the mortgage market.
As a result of the review, FHFA is directing Fannie Mae and Freddie Mac to eliminate the adverse market charge put in place in March 2008. That revenue will be replaced by targeted increases in guarantee fees to address various risk-based and access-to-credit considerations.
According to the FHFA, the changes to guarantee fees are roughly revenue neutral for Fannie and Freddie and will result in either little or no change for most borrowers.
The FHFA will continue to monitor guarantee fees closely and make adjustments as necessary. FHFA says g-fees are at appropriate levels, will continue to monitor.