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FHA Clarifies: New Mortgage Fees to Apply to New Mortgages Only

Mon, Dec 15, 2014

Washington, District Of Columbia

Housing officials and lending groups have been told that new U.S. Department of Housing and Urban Development (HUD) fees on mortgages will apply only to new loans, according to a report from Politico.  

A provision in this year's Transportation, HUD and Related Agencies Appropriations Act (S. 2438) would charge lenders an administrative support fee. The fee would fund an enhanced quality assurance program for single-family loans, and it was estimated that it would raise approximately $30 million per year.  

The Credit Union National Association joined with nine other financial services organizations last month in writing a letter to Senate and House leadership expressing concerns with the provision, particularly that mortgages originated last year would be included in the fee.  

According to Politico's report, Obama administration officials have informed stakeholders that the fees would only be collected on new loans, not past mortgages.  

The cost for the fees, expected to be passed onto homebuyers, is estimated to be $40 for every $100,000 borrowed.


Source: CUNA