Mortgage-Fee Plan Faces Pushback
Lawmakers and attorneys general in New York, New Jersey, Illinois, Connecticut, and Florida oppose the Federal Housing Finance Agency’s proposal to hike loan fees by 0.15 to 0.3 percentage points in those states.
These five are among the 23 states that require judicial foreclosures, but their foreclosure periods are the longest; and the agency says Fannie Mae and Freddie Mac are losing more money as a result. In Florida, for instance, 159,000 of the mortgages guaranteed by the government-sponsored enterprises, or about 8 percent, have not made payments in a year.
Officials in the five targeted states insist that the longer process ensures that borrowers are protected from wrongful foreclosures. A final decision on the fees likely will not be made before April, according to the FHFA.