The Federal Housing Finance Agency said the average single-family guarantee fee decreased to 65.2 basis points in 2024 from 65.5 in 2023.
Details: In its latest annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac, the FHFA said:
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The upfront portion of the g-fee, which is based on credit risk attributes, declined from 18.0 basis points in 2023 to 16.1 basis points in 2024.
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Upfront fees declined due to the Enterprises’ acquisition during 2024 of certain loans with limited guarantee fees designed to support the Enterprises’ housing mission.
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Average guarantee fees remained constant on 30-year and 15-year fixed rate products at 66 basis points and 47 basis points, respectively.
Background: Guarantee fees are intended to cover the expected credit losses, administrative costs, and cost of capital that the enterprises incur when they acquire single-family loans from lenders.