The National Association of Realtors (NAR) says it supports the FHFA's recent decision to delay Fannie Mae and Freddie Mac increases on guarantee fees (G-fees).
Steve Brown, president of NAR, says the following statement:
‘Realtors applaud the decision by Federal Housing Finance Agency (FHFA) Director Mel Watt to delay increases in guarantee fees on loans purchased by Fannie Mae and Freddie Mac. In a September 2013 letter, NAR called on FHFA to refrain from changing its fee structure until completing an analysis to determine the effectiveness of its fee pricing policy at bringing private enterprise back into the market."
As promised, Mel Watt said Wednesday that the fee hikes announced in December by Edward DeMarco, former interim director of the FHFA, have been postponed until the FHFA has conducted a thorough evaluation of the proposed changes and their likely impact on the housing market.
‘We are pleased that Director Watt has agreed to halt implementation of the increases and conduct a thorough evaluation of the proposed changes and their likely impact on mortgage credit availability," Brown concludes.
The proposed G-fee hikes were controversial because some industry experts feared they would sharply increase the upfront fees for borrowers with less-than-perfect credit scores or those who cannot make significant down payments.