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On September 8, 2014, NAR submitted comments to FHFA in response to its Request for Input on the guarantee fees (g-fees) that Fannie Mae and Freddie Mac (the government-sponsored enterprises or Enterprises) charge lenders; and to raise concerns about implementation of the proposed increases to both the g-fee and up-front fees charged to borrowers (loan level pricing adjustments or LLPAs).
In its letter, NAR stated its opposition to policies that raise fees so high that it directly impacts the cost and, ultimately, the eligibility of many homebuyers. NAR also opposes FHFA policies that will result in billions of dollars of profits for the Enterprises at the expense of home buying taxpayers noting that guarantee fees should protect taxpayers against losses, not increase profits. Additionally, the letter stated that raising the costs of homeownership through increased g-fees and high LLPAs will not bring back the PLS market more quickly but rather it is likely to simply drive borrowers either to FHA or out of the market entirely.