FHFA Extends Deadline For Input On G-Fees

Posted by Patrick Barnard on July 30, 2014 No Comments
Categories : Residential Mortgage

The Federal Housing Finance Agency (FHFA) has extended the deadline for its request for input on the guarantee fees (g-fees) that Fannie Mae and Freddie Mac will charge lenders from Aug. 4 to Sept. 8.

In a release, FHFA officials say they are extending the deadline so that it coincides with the deadline for input on its proposed private mortgage insurer eligibility requirements, which is also due Sept. 8.

Input on each topic must be submitted separately.

In January, Mel Watt, director of the FHFA, postponed the implementation of g-fee increases that were previously announced in December 2013 by former director Edward DeMarco, pending further review.

‘The implications for mortgage credit availability and how these changes might interact with the new qualified mortgage standards could be significant,’ Watt said at the time. ‘I want to fully understand these implications before deciding whether to move forward with any adjustments to g-fee pricing.’

G-fee hikes are controversial because some industry experts fear they could sharply increase the upfront fees for borrowers with less-than-perfect credit scores or who cannot make significant down payments.

The request for input includes questions related to g-fee policy and implementation. Basically, the goal is to provide the optimum level of g-fees required to protect taxpayers, while at the same time maintaining ample mortgage credit availability.

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