Federal mandate halts home resale fees

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.
Feb. 4, 2011
66fdbcfc36c97e78bc8b5be5 For20sale 2

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.

Sign-up for Pro Builder Newsletters
Get all of the latest news and updates.