Brief Guarantee Fees - An Art, Not a Science
Laurie Goodman, Ellen Seidman, Jim Parrott, Jun Zhu
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This commentary examines the potential impact of increasing the guarantee fees that Fannie Mae and Freddie Mac charge lenders. We identify the three most important assumptions made in determining the fees, conclude that transparency regarding these assumptions is critical, and that, under any reasonable set of assumptions, the fees should not be increased for the least risky loans. We also conclude that the GSEs' mission should be taken into account in determining the appropriate capital requirement.
Research Areas Housing finance Housing
Tags Federal housing programs and policies
Policy Centers Housing Finance Policy Center