Monday, November 24, 2014

Trade Groups Concerned about FHA Fee

Bank, credit union, and several other trade groups last week wrote to the leaders of the Senate Appropriations Committee urging them to remove a Federal Housing Administration administrative fee from the Senate’s spending bill for financial and housing agencies.

The provision, expected to raise $30 million for FHA quality assurance efforts, would allow the Department of Housing and Urban Development to charge a fee of no more than four basis points of the original principal balance of all FHA-insured mortgages a lender made in the previous fiscal year.

The groups expressed concerns about the fee’s retroactivity, which will make it harder for lenders to predict their costs, and about the overall size of the fee.

Read the letter.
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