December 14, 2020

FHFA: 2019 Report to Congress on Guarantee Fees Issued

The Federal Housing Finance Agency (FHFA) today released its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises).  The Housing and Economic Recovery Act of 2008 requires FHFA to conduct an ongoing study of the guarantee fees charged by the Enterprises and to submit a report to Congress each year. 

Guarantee fees are intended to cover the credit risk and other costs that the Enterprises incur when they acquire single-family loans from lenders.  These include projected credit losses from borrower defaults over the life of the loans, administrative costs, and a return on capital.  The report compares year-over-year 2019 to 2018 and provides statistics back to 2017.  Significant findings of the report include:

Fannie Mae and Freddie Mac Guarantee Fees in 2019

This post was originally published here.