ARLINGTON, Va. — NAFCU "strongly opposes" recently announced mortgage loan fee and other changes by Fannie Mae and Freddie Mac.
A Dec. 18 letter from NAFCU President and CEO Dan Berger urged the Federal Housing Finance Agency to reverse course on a 10 basis-point increase in guarantee fees and changes to loan-level price adjustments for single-family loans with original maturities greater than 15 years.
"NAFCU does not believe that these actions are appropriate because the cost of borrowing will greatly increase and lending will inevitably slow down," wrote Berger. "While we recognize that the housing market is recovering, it is important that the FHFA considers that there are many indicators showing a slowdown in the recovery. For example, applications for purchase transactions have decreased by 10% from the 3rd quarter in 2012 to the same time this year. During the same period, lenders have seen over 50% fewer mortgage applications, including refinancings. Further, and crucially, many lenders, including a vast majority of NAFCU member credit unions, do not plan to extend mortgages that do not meet the definition of 'qualified mortgage.'"
Berger's letter said that NAFCU believes the FHFA's changes will adversely impact credit unions and the nation's 97 million CU members. He also offered to meet with FHFA staff to discuss the matter "at the earliest possible time."
