December 21, 2021

FHFA: Report on Enterprise Single-Family Guarantee Fees in 2020 Issued

The Federal Housing Finance Agency (FHFA) today issued its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises). 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 costs 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 2020 to 2019 and provides statistics back to 2018. Significant findings of the report include:

The Housing and Economic Recovery Act of 2008 requires FHFA to conduct ongoing studies of the guarantee fees charged by the Enterprises and to submit a report to Congress each year.

Fannie Mae and Freddie Mac Single-Family Guarantee Fees in 2020‚Äč

This post was originally published here.