Industry Groups Push to Lower 'Uneccessary' GSE G-Fees, LLPAs
June 24, 2016
Housing industry trade groups and other interests joined forces this week in urging the Federal Housing Finance Agency to lower GSE guaranty fees. Fannie Mae and Freddie Mac are no longer exposed to the credit risk they were at the height of the crisis in 2008, they said in a letter to FHFA Director Mel Watt. The June 22 letter was signed by 25 organizations, including the Consumer Mortgage Coalition, Mortgage Bankers Association and U.S. Mortgage Insurers. It not only called for lower g-fees but also said loan-level price adjustments need to be reduced or eliminated. The groups argue that both fees prevent qualified borrowers from entering the housing market.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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