WASHINGTON – The Trump administration has criticized the move by mortgage finance firms Fannie Mae and Freddie Mac to charge new fees for certain mortgages, saying it would harm consumers.
A senior White House official said in a written statement late Thursday: “The White House has serious concerns about this action and is reviewing it. “It seemed only to help Fannie and Freddie, not the American consumer.”
The problem is the 0.5% surcharge that the government-controlled mortgage giants say they will begin to impose on most refinanced mortgages with lower interest rates.
The firms’ decision, which said the fee was intended to address the growing credit risk in the mortgage market, was met with rapid opposition from the industry, arguing that it would increase costs for people. borrows and goes against Federal Reserve support efforts. lower interest rates.
Earlier, on Thursday, an alliance of 20 consumer and industry groups, including the Mortgage Banking Association and the National Real Estate Brokerage Association, urged companies and regulators of they, the Federal Housing Finance Authority, cancels the fee. A senior FHFA official said late on Thursday the agency had no plans to cancel the fee immediately.