Federal mandate halts home resale fees

Printer-friendly versionSend by email

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.

Comments on: "Federal mandate halts home resale fees"

March 2014

This Month in Professional Builder

Products

For all of its fiberglass doors, Jeld-Wen now incorporates Neopor, an exclusive technology from BASF that has advantages over the industry-standard urethane core.

Features

Trade-specific occupations represent 64 percent of all jobs in the residential construction industry, and carpenters represent almost half of those construction jobs.