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.
Advertisement
Related Stories
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home
Builders
A Look at the Boom in Home Builder Stocks During 2023
In 2023, stocks for the 10 biggest U.S. home builders outperformed the S&P 500. What does that say about the housing market?
Financials
Housing Demand Could Rebound in 2024 as Mortgage Rates Ease
The Mortgage Bankers Association predicts lower mortgage rates could bring homebuyers back into the market in 2024
