WASHINGTON (May 2, 2018) - Government-sponsored enterprises Fannie Mae and Freddie Mac both reported multi-billion dollar profits this week. NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty issued the following statement calling on the Federal Housing Finance Agency to reduce the fees the GSEs charge to lenders and homebuyers:
“The National Association of Realtors® urges government-sponsored enterprises Fannie Mae and Freddie Mac to reduce the credit risk guarantee fees, or g-fees, charged to lenders and the upfront loan leveling pricing adjustments, or LLPAs, charged to consumers.
“FHFA’s current fee policies are resulting in billions of dollars of profits for the enterprises. Realtors® believe that fees should reflect the enterprises’ newly lower corporate tax rate, preserve the current target rate of return and be used only to protect taxpayers against enterprise-related losses. High fees should not be used to pay Wall Street-like returns to the U.S. Treasury and fund general government spending.
“We continue to urge FHFA to act quickly and reduce g-fees and LLPAs, as continued high fees only reduce access to mortgage credit and raise the costs of homeownership at a time when home prices and mortgage rates are also rising.”
The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.