MBA Comments on FHFA G-Fee Report

The Federal Housing Finance Agency this week issued its 2016 Report to Congress on Guarantee Fees, noting “competitive pressures” between Fannie Mae and Freddie Mac resulted in an average two basis-point drop in average single-family guarantee fees in 2016, from 59 basis points to 57 basis points.

Mortgage Bankers Association President and CEO David Stevens, CMB, issued a statement yesterday, commending FHFA and the GSEs for maintaining G-fee parity across all lender sizes.

“Establishing and maintaining a level playing field is essential to creating a modernized, robust and healthy housing finance system,” Stevens said. “This is why MBA’s GSE Reform White Paper calls for statutory changes which would mandate that part of the regulator’s mission would be to ensure fair and transparent access to the secondary market for all lenders, regardless of size or business model.”

FHFA reported (https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/GFeeReport10172017.pdf) the average guarantee fee in 2016 on fixed-rate, 30-year loans fell by 2 basis points to 61 basis points; the fee on fixed-rate, 15-year loans fell by 4 basis points to 37 basis points; and the fee on adjustable-rate mortgage loans remained steady at 59 basis points. FHFA also reported extra-small lenders paid, on average, 2 basis points less than extra-large lenders in total guarantee fees in 2016. G-fees among the size groups have been comparable, with only small differences in any year since 2013.