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​Guarantee Fees


FHFA Request for Input - Background

On December 9, 2013, the Federal Housing Finance Agency (FHFA) announced proposed increases to guarantee fees (g-fees) that Fannie Mae and Freddie Mac (the Enterprises) charge lenders.  The Enterprises receive these fees in return for providing a credit guarantee to ensure the timely payment of principal and interest to investors in Mortgage Backed Securities (MBS) if the borrower fails to pay.  The MBS, in turn, are backed by mortgages that lenders sell to the Enterprises.  

The proposed changes included an across-the-board 10 basis point increase, an adjustment of up-front fees charged to borrowers in different risk categories and elimination of the 25 basis point Adverse Market Charge for all but four states.  On January 8, 2014, Director Melvin L. Watt suspended implementation of these changes pending further review. As part of that review, FHFA is now soliciting input on guarantee fees. Deadline for input is September 8, 2014.

Link to View Input Received​ [select Guarantee Fees in pull down at top of page]

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