Agency soliciting public comments on how its pricing framework protects Fannie Mae, Freddie Mac, and taxpayers against potential future losses, while supporting affordable, sustainable housing and first-time homebuyers.
Read More »Analysis: GSE Report on Single-Family Guarantee Fees
Pursuant to the Housing and Economic Recovery Act of 2008, the FHFA has released its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac.
Read More »G-Fees at the GSEs
A new FHFA report parsed through the numbers to give insights into the changes in guarantee fees for Fannie Mae and Freddie Mac.
Read More »Freddie Mac Perspectives Blog: G-Fees and CRT
In a Freddie Mac Perspectives blog, Kevin Palmer, SVP of Single-Family Credit Risk Transfer, explained how credit risk transfers and Guarantee fees have much more in common that one might think—one gives Freddie Mac significant insight into the other.
Read More »Freddie Mac Speaks: G-Fees and CRT
Kevin Palmer, SVP of Single-Family Credit Risk Transfer at Freddie Mac, on how credit risk transfers are indicating whether Freddie's Guarantee fees are in line with what the private market would charge.
Read More »House Passes Amendment to Transportation Bill, Eliminating Delay to GSE G-Fee Cuts
The U.S. House of Representatives voted on Thursday to pass an amendment eliminating the use of guarantee fees on mortgages backed by Fannie Mae and Freddie Mac to fund a controversial $47 billion transportation bill known as H.R. 22, or the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act
Read More »Average Guarantee Fees on GSE Loans Are Two and a Half Times Their 2009 Level
According to the FHFA report, the average level of guarantee fees charged has increased since 2009, when the report began. The guarantee fees are now two-and-a-half times their previous level from 2009 to 2014. The average fees increased from 22 basis points to 58 basis points from 2009 to 2014. From 2013 to 2014, average fees increased from 51 basis points to 58 basis points.
Read More »FHFA: Current G-Fees Are at an Appropriate Level, Only Modest Adjustments Needed
When considering adjustments to G-fees for certain categories of loans, FHFA took into account the decision (also announced Friday) to enhance the eligibility standards for mortgage insurance companies. Overall, the FHFA said, the modest changes being made to the upfront G-fees are revenue neutral and will mean little or no change for Fannie Mae and Freddie Mac.
Read More »FHFA Announces Increase in Guarantee Fees
The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to raise their guarantee fees (g-fees). The g-fee increase consists of three components: the base fee for all mortgages will increase 10 basis points; the g-fee grid will be updated to ensure pricing is aligned with credit risk; and the adverse market fee of 25 basis points is being eliminated except in four states where foreclosure carrying costs are exponentially high.
Read More »Barclays: Non-Agency RMBS Market to Make a Small Comeback
Barclays forecast new non-agency RMBS issuance at $12 to $15 billion at the start of the year, and its latest research shows the market is on track to hit that mark. Contributing to that forecast are a few factors: First, Barclays notes, the capital costs of holding loans in portfolio will increase for many banks under Basel III, making securitization a more attractive proposition. Second, further hikes in guarantee fees (g-fees)--such as those mandated by the Federal Housing Finance Agency (FHFA)--could make for a more competitive private-label market.
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