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\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"By Kerry Smith FHFA is increasing the \u201cG-fee\u201d on most high-balance and second-home mortgages. Translation: After April 1, buyers seeking these loans will pay a bit more. WASHINGTON \u2013 On Wednesday, the Federal Housing Finance Agency (FHFA) announced an increase in Fannie Mae and Freddie Mac\u2019s upfront fees for some high-balance and second-home loans. The increase in the so-called \u201cG-fees\u201d begins on April 1, 2022, according to FHFA\u2019s announcement. More than half of all mortgages, once originated by a lender, are sold to either Fannie Mae or Freddie Mac. The system provides liquidity to the U.S. mortgage market and allows local lenders to finance even more loans. FHFA uses money generated by the G-fees \u2013 essentially a surcharge to loans they purchase \u2013 to support affordable housing through programs such as HomeReady, Home Possible, HFA Preferred and HFA Advantage. FHFA says the increase will help it meet objectives outlined in its 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions to \u201cincrease support for core mission borrowers, while fostering capital accumulation, achieving viable returns and ensuring a level playing field for small and large sellers.\u201d Starting in April, G-fees for the affected high-balance home loans will increase between 0.25% and 0.75%, tiered by loan-to-value ratio. Fannie Mae calls these high-balance loans; Freddie Mac calls them super-conforming loans. However, loans to first-time homebuyers in high cost areas with incomes at or below 100% of area median income won\u2019t have specific high balance upfront fees. For second-home loans, upfront fees will increase between 1.125% and 3.875%, tiered by loan-to-value ratio. The National Association of Realtors\u00ae (NAR) opposes G-fee increases but says the latest change has a positive side if it helps Fannie and Freddie maintain broad liquidity as the federal government pulls back unprecedented support during the pandemic. Still, it expects an undue impact in higher-cost metro areas and areas with a high level of second-home purchases. \u201cFannie Mae and Freddie Mac will face greater risks as the market is weaned off of the extraordinary federal support during the pandemic, and these changes may help them to support the maximum access and affordability possible for the market in a sound manner,\u201d says NAR President Leslie Rouda Smith. \u201cHowever, we are concerned that any fee increases that exceed necessary levels in the current environment will harm affordability and access for consumers. Realtors\u00ae believe any excess revenues gleaned from the fee increases must be used to support homeownership opportunities in underserved communities, expanding affordability and access in a safe manner.\u201d \u201cToday\u2019s action represents another step FHFA is taking to strengthen (Fannie Mae and Freddie Mac\u2019s) safety and soundness, and to ensure access to credit for first-time homebuyers and low- and moderate-income borrowers,\u201d says FHFA Acting Director Sandra L. Thompson. \u00a9 2022 Florida Realtors\u00ae Go to Source Author: kerrys<\/p>\n","protected":false},"author":4,"featured_media":6018,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6017"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=6017"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/6018"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=6017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=6017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=6017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}