The National Association of Federal Credit Unions recently solicited input from members on the potential consequences of higher guarantee fees charged by Fannie Mae and Freddie Mac.
Last year, the Federal Housing Finance Agency said it would consider raising guarantee fees, which led to blowback from the industry, which maintained the fee hikes would increase borrower costs and hamper lending. The proposal was later withdrawn by FHFA Director Mel Watt.
The FHFA is currently seeking public comment on the consequences of a potential increase in the fees of 10 basis points across the board, an adjustment of up-front fees for borrowers in various risk categories and the elimination of a 25-basis-point adverse market charge in all except four states.
NAFCU has encouraged its members to submit comments to the trade group by July 11. Final comments are due to the FHFA by Aug. 4. Members can submit input to NAFCU via an online questionnaire on the group’s website or information provide in the regulatory alert.
Earlier this year, NAFCU joined other trade groups, including the American Bankers Association, American Land Title Association, Community Mortgage Lenders of America, Credit Union National Association and Mortgage Bankers Association, urging legislators to refrain from using guarantee fees to extend emergency unemployment compensation.