Ban on Private Transfer Fee a Big Win for Buyers
Efforts by NAR and others to curtail private transfer fees got a big boost yesterday with publication of a final rule by the Federal Housing Finance Agency (FHFA) prohibiting the fees on mortgages handled by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. FHA already bans the fees.
The fees are encumbrances placed on mortgages by the property developer to generate fees every time the property is sold. The fees range in amounts, but in some cases they’re as high as 1 percent of the mortgage amount and are often in effect for as long as 99 years.
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