Ban GSEs from Investing in Mortgages with Transfer Fees

The Federal Housing Finance Agency (FHFA) wants to restrict Fannie Mae and Freddie Mac from purchasing mortgages with private transfer fee covenants, also referred to as Wall Street home resale fees.


These fees are sometimes worked into the language of home purchase contracts, and require that a percentage of the sale price be paid to the original owner of the property every time the property is sold, typically for 99 years.

FHFA has issued a notice of proposed guidance to the Federal Register, that would ban Fannie and Freddie from purchasing or guaranteeing mortgages and securities that have the controversial home resale fees attached to them. The guidance would also extend to home loans and securities purchased by the Federal Home Loan Banks or acquired as collateral for advances.

FHFA is seeking public comment on its proposed ban on home resale fees for the next 60 days before finalizing the new rule.