FHFA Fee Input Needed
FHFA Proposes Adjustment to State-Level Guarantee Fee Pricing
The Credit Union National Association (CUNA) is currently soliciting your input on a Federal Housing Finance Agency (FHFA) proposal to adjust the guarantee fees (“g-fees”) that the government-sponsored enterprises (GSEs) charge for single-family mortgages in certain states to recover a portion of the exceptionally high costs that the GSEs incur in cases of mortgage default in those states.
The proposal of the FHFA, which oversees the operations of the GSEs, would focus on the five states with the average total carrying costs that significantly exceed the national average and, therefore, impose the greatest costs on the GSEs and taxpayers. The methodology used to develop the planned approach to state-level g-fee pricing relies on the following key factors:
- The expected number of days that it takes a GSE to foreclose and obtain marketable title to the collateral backing a mortgage in a particular state;
- The average per-day carrying cost that the GSEs incur in that state; and
- The expected national average default rate on single-family mortgages acquired by the GSEs.
Under the proposal, mortgages originated in Connecticut, Florida, Illinois, New Jersey, and New York would have an upfront fee of between 15 and 30 basis points, which would be charged to lenders as a one-time upfront payment on each loan acquired by the GSEs
CUNA Discusses Concerns Regarding Short Sale Guidelines with FHFA
On November 9, 2012, Credit Union National Association (CUNA) staff discussed with Federal Housing Finance Agency (FHFA) policy staff concerns regarding the FHFA’s short sale guidelines. The guidelines consolidated the existing GSE short sale programs into one standard program, effective November 1, 2012. The FHFA/CUNA call follows a letter that they sent last week to the FHFA regarding initial concerns from credit union members on the scope of the guidelines and the implementation of the program.