Special Update: G-fee Increase

2017-12-20T17:34:12+00:00 December 10th, 2013|Categories: Special Update|Tags: , , , , |

FHFA Acting Director DeMarco announced yesterday an increase in the ongoing guaranty fee (g-fee) of 10 basis points on all loans sold to Fannie and Freddie beginning March 1, 2014 and for all loans guaranteed in mortgage-backed securities with settlements on or after April 1, 2014.  In addition, he announced the end of the 25 basis point one-time up-front adverse market fee for all states except New York, New Jersey, Connecticut, and Florida (high cost foreclosure states).  This fee has been in effect since 2008.  This too will be effective on March 1 and April 1 as described above. There also will be changes to the up-front risk based pricing grid. Mel Watt is expected to be confirmed soon as the new FHFA Director, and he will have the discretion to alter these policies.