ALTA Supports Banning Private Transfer Fees

Posted by Orb Staff on October 19, 2010 No Comments
Categories : Residential Mortgage

The American Land Title Association (ALTA) is backing the Federal Housing Finance Agency's (FHFA) proposal to prevent Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investing in mortgages encumbered by private transfer-fee covenants.

‘These fees provide no service or benefit to homeowners, and raise the costs of homeownership,’ says Kurt Pfotenhaur, CEO of ALTA. ‘They are simply designed to generate additional revenue for investors at the expense of consumers.’

ALTA voiced its opposition to the fees in an Oct. 15 letter to the FHFA. At the state level, 18 states already have bans or restrictions in place against the use of private transfer fees.

SOURCE: ALTA

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