WASHINGTON – The Trump administration has criticized a move by mortgage lenders Fannie Mae and Freddie Mac to impose a new fee on certain mortgages, saying it would be detrimental to consumers.
“The White House has serious concerns about this action, and is monitoring it,” a senior White House official said in a written statement late Thursday. “It only appears to help Fannie and Freddie and not the American consumer.”
At issue is a 0.5% circulation that the government-controlled mortgage giants said they will start submitting on most mortgages that are refinanced at lower interest rates.
The companies’ decision, which said the fee was intended to address increased credit risk in the mortgage market, was met with rapid opposition from the sector, which said it would increase costs for lenders and against Federal Reserve efforts support lower interest rates.
Earlier on Thursday, a coalition of 20 consumer and industry groups, including the Association of Mortgage Bankers and the National Association of Realtors, asked the companies and their regulator, the Federal Housing Finance Agency, to return the fee. A senior FHFA official said late Thursday that the agency has no immediate plans to refund the fee.
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