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June 6, 2014 – The Federal Housing Finance Agency is requesting comments on its proposed increases to guarantee fees, or g-fees, charged by government-sponsored enterprises Fannie Mae and Freddie Mac – a change NAFCU opposes.

Under the plan, FHFA would increase the g-fees by 10 basis points across the board, adjust up-front fees for borrowers in different risk categories and eliminate the 25-basis-points Adverse Market Charge in all but four states.

NAFCU objects strongly to the plan and urged the agency to reverse the plan in December. In a letter, NAFCU President and CEO Dan Berger wrote, "NAFCU does not believe that these actions are appropriate because the cost of borrowing will greatly increase and lending will inevitably slow down. While we recognize that the housing market is recovering, it is important that the FHFA considers that there are many indicators showing a slowdown in the recovery."

Later that month, FHFA Director Mel Watt said he would delay the implementation of the planned mortgage fee increases until he could "evaluate" the plan further. In the wake of the agency's announcement, NAFCU will continue to monitor progress on this issue, and will submit comments on the proposed changes.

NAFCU also joined other trade groups in January to protest the use of g-fees by Congress to extend emergency unemployment compensation, saying using g-fees this way would hinder consumers looking to buy or refinance homes.