Sept. 21, 2012 – The Federal Housing Finance Agency is seeking feedback from the public on a proposal to charge higher guarantee fees on single-family home loans in states where foreclosure costs are statistically higher than the national average.
The proposal, which was submitted for publication in the Federal Register yesterday, would adjust the guarantee fees that Fannie Mae and Freddie Mac charge on single-family mortgages in Illinois, Florida, Connecticut, New Jersey and New York. The fee could add another $42 a year to the payments on a $200,000 mortgage, beginning next year, the agency says. The higher fees “are intended to reflect the disparity in costs, as compared to the national average,” FHFA said.
The agency is seeking feedback on this approach and potential future approaches to setting and adjusting state-level guarantee fees. After FHFA considers feedback from the public on the proposal, it will determine a final methodology for state-level guarantee fee pricing. FHFA expects to direct Fannie and Freddie to implement the pricing adjustments in 2013.
Comments to FHFA about the proposal can be e-mailed to gfeeinput@fhfa.gov or mailed to FHFA OPAR, 400 Seventh St., SW, Ninth Floor, Washington, DC 20024. The agency says it may make public any submissions it receives.
Earlier this month, FHFA announced it has directed Fannie and Freddie to raise the guarantee fees they charge nationwide on single-family mortgages by an average of 10 basis points.