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06.06.14

Have Thoughts about Proposed Fannie/Freddie Guarantee Fees?

The Federal Housing Finance Agency (FHFA), the agency that regulates Fannie Mae, Freddie Mac and the twelve Federal Home Loan Banks, released an announcement yesterday soliciting input on the guarantee fees that Fannie and Freddie charge lenders. These guarantee fees are designed to allow payment of principal and interest to investors in mortgage-backed securities if the borrower fails to pay on time.  Since Fannie and Freddie began operating in convervatorships in 2008, FHFA has the authority as conservator to direct certain guarantee fee increases. In December 2013, FHFA proposed a 10 basis point increase in guarantee fees across-the-board, and this request for input seeks comment on that proposal as well as a number of other topics covered by the request that can be found here. Input is due no later than August 4, 2014.