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Official News of G-Fee Hike Delay from FHFA
Posted to: Micro News
Wednesday, January 08, 2014 10:33 AM
In a nutshell, this pertains to the G-fee and LLPA increases that were set to push rates .25-.375% higher for most borrowers and that some lenders had already begun pricing into 60 day locks. The prospective delay was announced in an email from Watt to reporters in late December, but this makes it official.
Press Release from FHFA:
Washington, DC – In early December, the Federal Housing Finance Agency (FHFA) announced plans to increase the base guarantee fee (g-fee) for all mortgages by 10 basis points, update the up-front g-fee grid, and eliminate the up-front 25 basis point adverse market fee that has been assessed on all mortgages purchased by Fannie Mae and Freddie Mac since 2008 effective in March and April 2014. FHFA announced today that it has directed Fannie Mae and Freddie Mac to delay implementation of these changes.
FHFA Director Melvin L. Watt, who was sworn in as Director on January 6, said that he intends to conduct a thorough evaluation of the proposed changes and their likely impact as expeditiously as possible, and would give not less than 120 days’ notice after completing the evaluation before implementing any changes. “The implications for mortgage credit availability and how these changes might interact with the new qualified mortgage standards could be significant,” said Watt. “I want to fully understand these implications before deciding whether to move forward with any adjustments to g-fee pricing.”
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