The proposed ban is coming under heavy fire from different factions of the mortgage industry, including the Council of Federal Home Loan Banks, REITs and even private investors that own mortgage stocks.
“If g-fee increases were being used to build up enterprise reserves, instead of being swept under the Treasury agreement, we would be more open to such increases,” said the CHLA.
Lenders financed $11.9 billion of conforming-jumbo mortgages – loans greater than $417,000 – through Fannie, Freddie and the FHA during the second quarter.