FHFA: GSEs Will Continue to Increase Guarantee Fees
Fannie Mae and Freddie Mac seller/servicers which have already been hit with two guarantee-fee increases in the past seven months should expect even more, according to acting director of the Federal Housing Finance Agency.
In a speech early Wednesday afternoon, FHFA acting director Edward DeMarco, noted that the g-fee hikes will move GSE pricing “closer to what it would be were mortgage credit risk borne solely by private capital.”
DeMarco added that such a strategy “could begin to incentivize private firms to increase their participation in the mortgage market. We intend to stay on that path with future increases.”
The agency, which serves as both regulator and conservator of the two, has a stated goal of reducing the role the two play in the U.S. mortgage market.
Many mortgage banking executives believe that little will be done legislatively over the next year to reorganize the two.