A coalition of the nation’s largest housing groups is speaking out against the fees that Fannie Mae and Freddie Mac charge lenders to guarantee mortgage loans, reports HousingWire staffer Ben Lane.
The coalition, made up of 26 housing and community groups, says those fees actually serve as a tax on consumers and prevent more potential borrowers from becoming actual borrowers. It sent a letter Wednesday to the Federal Housing Finance Agency, stating that the current level of Fannie and Freddie’s fees unfairly impact borrowers, especially low- and moderate-income and first-time home buyers.
In the letter, the groups request that the FHFA either reduce or completely eliminate the loan-level price adjustments currently in place for government-sponsored enterprise loans.
According to the groups’ letter, the GSEs credit pricing currently includes LLPAs and ongoing guarantee fees, both of which are “ultimately borne” by borrowers as part of their up-front closing costs and/or as part of their ongoing monthly payments.