Eliminating Private Transfer Fee Mortgages

GSE Regulator Eyes Private Transfer Fees
NAR commended the Federal Housing Finance Agency for taking steps to restrict Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks from investing in mortgages with private transfer fees. A private transfer fee, often attached to a property by a developer, is a fee due to the developer each time the property is resold. The term of some covenants can extend to 99 years. NAR is part of a coalition that strongly opposes such fees. Twelve states enacted legislation in 2010 to ban them. FHA has also denied its home loan programs to transfer fees. Learn more