Four out of the five states where the Federal Housing Finance Agency is considering an increase inmortgage guarantee fees do not have healthy housing markets, NAFCUGeneral Counsel Carrie Hunt said Wednesday in a letter to theagency.
|As a result, NAFCU said it strongly opposes the FHFA's plan toincrease guarantee fees to between 15 and 30 basis points.
|The fees, proposed for mortgages originated in Connecticut,Florida, Illinois, New Jersey and New York, are intended to allowthe GSEs to recover foreclosure costs. Of the five states, only inFlorida are housing markets improving, Hunt said.
|“Imposing additional cost to borrowing, especially on thoseborrowers who are creditworthy and ready to enter or re-enter thehousing market, is both unfair to those borrowers and potentiallydamaging to housing market in those states,” Hunt said.
|The NAFCU attorney proposed the FHFA should withhold anyguarantee fee increases until stable agency- and non-agencysecondary markets have been established.
|“To achieve this stage, Congress and the Administration shouldwork together to reform the housing finance market. In themeantime, however, the FHFA should not take any actions that wouldcreate unnecessary obstacles to the recovery of the housingmarket,” Hunt wrote in her letter.
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