Federal mandate halts home resale fees

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Under a new mandate from the Federal Housing Finance Agency, Freddie Mac and Fannie Mae will stop providing mortgages on homes that have home resale fees. The fees, also known as private transfer fees, are when the owner pays a percentage of the sales price to an entity at the time of sale. They have already been outlawed in 19 states.

February 04, 2011

Under a new mandate from the Federal Housing Finance Agency, Freddie Mac and Fannie Mae will stop providing mortgages on homes that have home resale fees, according to Housing Predictor.

The fees, also known as private transfer fees, are when the owner pays a percentage of the sales price to an entity at the time of sale. They have already been outlawed in 19 states. Several organizations have been lobbying for a halt to the transfer fees.

“FHFA’s decision enhances consumer protection and guards our fragile housing market from unnecessary financial risks,” said Kurt Pfotenhauer, CEO of the American Land Title Association.

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