NAR Comments on Gfee Increases
On Sept. 20, 2012, The Federal Housing Finance Agency (FHFA, the conservator of Fannie Mae and Freddie Mac (the GSEs) proposed adjustments to the Guarantee fees charged by Fannie Mae and Freddie Mac for individual states where the GSEs estimated longer timelines and higher costs for completing foreclosures. These additional upfront fees amount to 15-30 basis points.
NAR expressed concerns that the approach is inconsistent with other federal foreclosure prevention efforts specifically at a time when mortgage servicers are improving performance and requests that the agency propose changes in a more coordinated effort with other federal agencies. NAR also recommended that FHFA conduct further study on the effect the large number of mortgage defaults and servicing deficiencies have had on foreclosure timelines and how the increased credit quality of the GSEs current books of business will reduce the volume and therefore costs of processing foreclosures in the impacted states.