On August 14, 2023, the Center for American Progress submitted comments in response to the Federal Housing Finance Agency’s (FHFA) request for input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) single-family pricing framework and on the goals and policy priorities that the FHFA, as conservator and regulator of the Enterprises, should pursue in its oversight of the pricing framework. The FHFA also sought input on the process for setting the Enterprises’ single-family upfront guarantee fees.
CAP commends the FHFA’s adjustments to risk-based loan pricing, which are consistent with the Enterprises’ mission to always serve all markets and to support access to affordable homeownership in underserved communities. CAP’s letter recommends that the FHFA eliminates upfront fees so that historically disadvantaged borrowers across the credit spectrum stop incurring unfairly and arbitrarily imposed closing costs. The letter also recommends that the FHFA restructure ongoing guarantee fees and reduce differential mortgage insurance pricing across loans to reduce total costs for underserved borrowers.
Click here to read CAP’s comment letter.