The new director of the Federal Housing Finance Agency has followed through with a promise he made before being sworn in.
Former FHFA acting director Edward J. DeMarco last month notified Fannie Mae and Freddie Mac sellers that guarantee fees would be raised by 10 basis points on all loans.
In addition, a 25-basis-point adverse market fee was eliminated by the regulator for loans in all but four states, and the up-front g-fee grid was updated.
But following the Dec. 10 confirmation of Mel Watt as FHFA director, Watt issued a statement indicating that he intended to delay implementation of the g-fee and risk-based pricing plan.
On Wednesday, Watt — who was sworn in Monday as FHFA director — followed through on his promise.
A statement was issued indicating that FHFA has directed Fannie and Freddie to delay implementation of the changes.
FHFA said that Watt intends to expeditiously conduct a thorough evaluation of the proposed changes and their likely impact.
Once a final decision is made, lenders will be given at least 120 days’ advance notice.
“The implications for mortgage credit availability and how these changes might interact with the new qualified mortgage standards could be significant,” Watt said in the statement. “I want to fully understand these implications before deciding whether to move forward with any adjustments to g-fee pricing.”
