The Federal Housing Finance Agency (FHFA) has sent to the Federal Register a Notice presenting an approach to adjust the guarantee fees (G-fees) that Fannie Mae and Freddie Mac charge on single-family mortgages in states where costs related to foreclosure practices are statistically higher than the national average.
According to the FHFA, the size of the fee adjustments are intended to reflect the disparity in costs, as compared to the national average. The Notice invites public input on this approach and potential future approaches to setting and adjusting state-level G-fees.
‘As conservator of Fannie Mae and Freddie Mac, the FHFA has a statutory obligation to preserve and conserve their assets and has a responsibility to ensure that the companies properly measure and manage risk, and that they are compensated for the costs they incur,’ the agency said in a press statement. ‘After the FHFA's review and consideration of public input, the FHFA will determine a final methodology for state-level guarantee fee pricing.’
The FHFA will begin accepting submissions from the public for 60 days after the Notice appears in the Federal Register. The FHFA expects to direct Fannie Mae and Freddie Mac to implement the pricing adjustments in 2013.