Investors Unite Files G-Fee Response to FHFA
- June 18, 2014
Fannie-Freddie Shareholder Coalition Responds to the Federal Housing Finance Agency (FHFA) Request for Input on Proposed Increased Guarantee Fees |
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Coalition Raises Concern Over 100% of Profits Directed Away From Housing Market, To Deficit Reduction
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On June 18, 2014 Investors Unite Executive Director Tim Pagliara filed a response to the Federal Housing Finance Agency’s (FHFA) request for input on the proposed increase to guarantee fees (g-fees) that Fannie Mae and Freddie Mac charge lenders. On behalf of Fannie and Freddie shareholders, Mr. Pagliara encouraged FHFA Director Mel Watt to consider the new proposed policy in context of the Treasury Department’s 100 percent net worth sweep of the enterprises. “As long as Treasury is taking all of Fannie and Freddie’s profits, any increase in g-fees would amount to nothing more than a new tax applied to general deficit reduction, ” Pagliara said. “Ultimately, profits accumulated from g-fees and other business of Fannie and Freddie should be allowed to stay within the housing market and should be set at levels that help ensure safety and soundness of the GSEs, that protect long-term health of the housing market, and that respect the rights of all economic stakeholders-including the GSE’s shareholders.” Pagliara also submitted to FHFA a recommended set of principles that should be considered for g-fees following reversal of the 2012 net worth sweep. They are as follows: |
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