He also hinted that Fannie Mae and Freddie Mac may soon stop providing volume discounts to their largest seller/servicers.
Speaking at a mortgage conference in North Carolina, DeMarco noted that the GSEs have steadily hiked their 'g-fees' since being taken over by the government in early September 2008. He said the hikes have “lessened the degree of cross subsidization in credit pricing.”
An exact date for the g-fee increase was not provided, but any change would be gradual, he said.
In a CNBC interview after his speech DeMarco dismissed the idea that g-fee hikes will dampen the demand for housing, saying “fees alone are not a barrier” to home ownership.
He also defended himself against recent criticism that FHFA was standing in the way of a massive government refinancing program (see related story on this website), noting that his job is to follow the law and protect taxpayers from future losses.
