June 30, 2014

Members' input sought on FHFA g-fee issue

July 1, 2014 – NAFCU wants members' input by July 11 for the Federal Housing Finance Agency's investigation into the consequences of increasing guarantee fees charged by Fannie Mae and Freddie Mac.

When fee increases were first entertained last year, NAFCU objected strongly, noting concerns that g-fee hikes would push up borrower costs and slow lending. FHFA Director Mel Watt later withdrew the proposal for further evaluation.

As part of the FHFA investigation into changes to g-fees charged, FHFA is seeking comments on consequences of a potential increase in the fees 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 will submit comments on the proposed changes before the FHFA deadline of Aug. 4. Members can submit their input to NAFCU via the association's online questionnaire; a Regulatory Alert is also online.

Earlier this year, NAFCU joined with other trade groups in urging lawmakers not to use g-fees to extend emergency unemployment compensation.