FHFAs DeMarco: Fannies, Freddies Guaranty Fees Within Striking Distance of Competitive Private Market
March 21, 2013
Look for Fannie Mae and Freddie Mac to continue to increase their guaranty fees, but the current level of g-fees is approaching striking distance of the threshold expected in a competitive private market, the head of the Federal Housing Finance Agency told lawmakers this week.Testifying before the House Financial Services Committee, FHFA Acting Director Edward De-Marco said last years two 10 basis point g-fee increases raised the average fee to around 50 bps, double where they were when the GSEs were put in conservatorship in September 2008.