Letters Arguing Against FHFA G-Fee Plan
The Federal Housing Finance Agency has proposed to increase the guarantee fees (G-fees ) paid by homeowners for loans originated in five states that the agency characterizes as having excessively high foreclosure costs.
Below are links to comments strongly objecting to the proposal. They come from housing and consumer advocates (including AFR), members of Congress, legal and policy experts, Attorneys General, state legislators, and industry groups concerned about the state of the housing market.
These critics argue, among other things, that the proposal would punish borrowers in states with consumer protections designed to prevent unnecessary foreclosures, and pressure states to either do away with such protections or not adopt them in the first place; that it oversteps the bounds of the FHFA’s authority and mission; that it ignores a crucial driver of delay in the foreclosure process, which is the failure of mortgage servicers to follow required laws and procedures; and that it is based on a deeply flawed analysis of costs – one that, among many problems, ignores the ability of consumer protection measures to reduce costs by preventing foreclosures.
Americans for Financial Reform
Alan White (CUNY School of Law)
Attorneys General of Illinois, Connecticut, and New York
Center for American Progress and Co-Signatories
Community and Faith Based Organizations
Connecticut Congressional Delegation
Eighteen Senators and House Members from New York State
Institute for Policy Integrity (NYU Law School)
National Association of Consumer Advocates
New York State Assembly Leaders
New York State Consumer Fraud and Protection Bureau (A.G.’s Office)
New Yorkers for Responsible Lending
Senators Blumenthal, Menendez, Lautenberg, Schumer, Gillibrand, Lieberman, & Nelson
Industry letters: