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New Jersey Governor Chris Christie signed A. 2861 into law last week, banning Wall Street Home Resale Fees, or private transfer fees. New Jersey becomes the 19th state to restrict the use of these fees.
[IMAGE] [COLUMN_BREAK]The ""Coalition to Stop Wall Street Home Resale Fees"":http://www.stophomeresalefees.com calls private transfer fees a ""dangerous financial scheme"" that lowers a home's equity and resale value. The fees require that a percentage of the final sale price of a home be paid to a private third party every time the property is sold, typically for 99 years.
""The governor stood up for New Jersey homeowners by protecting consumers from these predatory fees,"" said Dan Mays, associate president of the ""New Jersey Land Title Association"":http://www.njlta.org/. ""This bill is an important step in enhancing consumer protections against these for-profit fees and safeguarding our already fragile real estate market from further abuse.""
On the federal level, the ""Federal Housing Finance Agency"":http://www.fhfa.gov (FHFA) has issued guidance that restricts ""Fannie Mae"":http://www.fanniemae.com and ""Freddie Mac"":http://www.freddiemac.com from investing in mortgages with these fees.
The Homeowner Equity Protection Act of 2010 currently being considered in the House is set to ban the fees across the country.
