Watt Reverses FHFA G-Fee Hike
Newly appointed Federal Housing Finance Agency Director Mel Watt yesterday delayed plans to increase the guarantee fees Fannie Mae and Freddie Mac charge. “The implications for mortgage credit availability and how these changes might interact with the new qualified mortgage standards could be significant,” said Watt. “I want to fully understand these implications before deciding whether to move forward with any adjustments to g-fee pricing.”
On Dec. 9, the FHFA said g-fees would rise by an average 14 basis points for 30-year, fixed-rate mortgages, and an average 4 basis points for 15-year mortgages. The fee increases would have reflected a 10 basis-point hike of the base g-fee for all mortgages, changes to the g-fee pricing grid and the elimination -- except in four states -- of the up-front 25 basis-point adverse-market fee that has been charged since 2008.
---ABA Daily Newsbytes
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