FHFA Fields Loud Objections to Proposal to Impose Higher Guaranty Fees in Five Slow-Foreclosure States
November 29, 2012
The Federal Housing Finance Agency is feeling some serious pushback from lawmakers, industry groups and even homeowners over its plan to impose a guaranty fee hike on several slow foreclosure states. The FHFA proposed to target five states – Connecticut, Florida, Illinois, New Jersey and New York – for an additional, one-shot g-fee of between 15 and 30 basis points in 2013. The fees, the FHFA contends, are intended to allow Fannie Mae and Freddie Mac to recover costs associated with foreclosures. The five states singled out are all judicial states where it is necessary to obtain court approval before foreclosure is completed. The National Association of Federal Credit Unions urged...
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