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​Guarantee Fees

​The Federal Housing Finance Agency (FHFA) has completed a comprehensive review of the agency’s policy for guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises).  FHFA’s review considered multiple factors, including responses to the agency’s June 2014 request for public input, analyses by housing finance market participants of the implied guarantee fee pricing from the Enterprises’ credit risk transfers, and internal analyses of Enterprise pricing, credit guarantee loss data, and modeling.

FHFA’s review focused on reaching an appropriate balance between FHFA’s statutory obligations to: 1) ensure the safety and soundness of the Enterprises, and 2) foster a liquid national housing finance market.  In light of this balance, FHFA determined, based on both internal and external analysis, that the current average level of guarantee fees appropriately reflects the current costs and risks associated with providing the Enterprises’ credit guarantee.  

​As a result, FHFA finds no compelling economic reason to change the general level of fees.  FHFA, however, is making certain minor and targeted fee adjustments.  To implement these decisions, the agency is directing the Enterprises to make changes to their guarantee fees that will slightly reduce, maintain, or increase costs for different categories of loans.  Since all of the guarantee fee changes are small, the agency does not expect the adjustments to cause any material changes to the Enterprises’ loan volume in any of the loan categories and expects the small changes to be revenue neutral.

Read more - History of Guarantee Fees prior to 2015  [Request for Input, Studies, etc.]

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