Menendez on G-Fee Implementation Delay

Menendez on G-Fee Implementation Delay

Washington, DC - Senator Robert Menendez (D-NJ) issued the following statement today following the announcement by the Federal Housing Finance Agency (FHFA) to delay the implementation of the most recent base guarantee fee (g-fee) on loans guaranteed by Fannie Mae and Freddie Mac.

"I commend FHFA Director Watt for his decision to delay and reconsider the mortgage guarantee fee increases that former Acting Director DeMarco announced on the night before the Senate confirmed Director Watt. The so-called 'adverse market fee,' in particular, would unfairly punish homeowners and homebuyers in New Jersey and three other states and wrongly incentivize states to weaken much-needed consumer protections in the foreclosure process. It would also unfairly impose higher costs on responsible new borrowers in large part because of past misconduct by banks and servicers. As millions of Americans have recently learned all too well, we need stronger, not weaker, protections for consumers against abusive foreclosure practices, and should not be creating incentives for states to allow a rush to foreclose."

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