This story appeared in Bank Digest.
The Federal Housing Finance Agency has taken additional steps toward fulfilling the Strategic Plan for Enterprise Conservatorships that it published in February 2012 by directing Freddie Mac and Fannie Mae to raise guarantee fees. "Today's price changes improve the relationship between g-fees and risk," said FHFA Acting Director Edward J. DeMarco. "The new pricing continues the gradual progression towards more market-based prices, closer to the pricing one might expect to see if mortgage credit risk was borne solely by private capital. The price changes provide better protection of and return to taxpayers, who are providing the capital support that keeps these companies operating. These changes should encourage further return of private capital to the mortgage market."