The Federal Housing Finance Agency is looking to end guarantee fee discounts for high-volume lenders from Fannie Mae and Freddie Mac, according to a recent report.
The FHFA's Director Mark Calabria filed the formal request to end the discounts as it tries to "level the playing field" for smaller lenders, with this request being high on the priority list.
“One of the things that really concerned me before the crisis was that it wasn’t unusual where the big guys like Countrywide would come in and they pay G-fees down here and you come in and pay G-fees up here," said Calabria when referring to smaller lenders paying higher G-fees than larger lenders at certain points in the past, according to HousingWire.
"But now, the director issued a formal directive to end volume discounts, which will be monitored by regular compliance reporting."
To learn more about the FHFA's plans moving forward and why it has motioned to remove fee discounts for high-volume lenders from Freddie and Fannie, click on the image above.