Forgotten Your Password?

Need to Register?

Question Icon

G-fees?

What are g-fees? When do they come into effect? by NYoung_356_105 from Cambridge, Massachusetts. Sep 7th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Just another way to raise taxes on the middle class without coming out and stating "We're raising taxes on the middle class", cause God knows, the current administration doesn't want to come out and say.. "We have to raise taxes".. not real good for campaigning!!.. Since Fannie/Freddie are both being run by your federal government, any increase decision is effectively made by the government... As Joe stated.. It will eventually turn out to be an increase in the interest rate that ultimately the borrower pays.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 7th 2012
1
0
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

The increase in guarentee fee will translate for a higher interest rate for the borrowers.

Sep 7th 2012
1
0
Joe Haglund (joehaglund)
#93 ranked lender in Arizona - 5 contributions

Late last week, the Federal Housing Finance Agency, the regulatory body for both Fannie Mae and Freddie Mac, announced another 10 basis points increase in guarantee fees (g-fee) that will go into effect between Nov. 1 and Dec. 1.This increase in g-fees -- the amount Fannie Mae and Freddie Mac charge lenders to guarantee loans -- will translate into about 40 to 50 basis points in price passed down to consumers regardless of which lender they choose, and borrowers should expect about a 0.5 percent increase in mortgage rates in the near future.Please let me know if you have any questions.Joe HaglundFirst New England Mortgage800-641-1622-direct

Sep 7th 2012
0
0
Jeremy Redlinger (JeremyR)
#30 ranked lender in Minnesota - 191 contributions

Guaranteed fees (g-fees) have been around for some time now and like Joe Haglund states they are the fees that Fannie and Freddie charge to guarantee loans. There are many speculations that the 10 basis points in g-fees will lead to a 40 to 50 basis point increase in pricing while others expect a 25 basis point increase in pricing. Either way the increase will ultimately lead to increased mortgage rates and reports have stated we may start to see lenders pricing for the increase in g-fees in the coming days.

Sep 7th 2012
0
0
Subscribe to our news feed.