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The 0.5% fee, aimed at recouping potentially
billions of dollars in losses created by the coronavirus
pandemic, was originally set to take effect on Sept. 1. The
regulator, the Federal Housing Finance Agency, also said the fee
would not apply to mortgages worth less than $125,000.
Fannie and Freddie had announced the fee earlier this month amid
a boom in refinancings as borrowers looked to take advantage of
record-low interest rates.
But the new fee was met with swift criticism by the banking
industry, consumer groups and members of Congress, who were wary
of what the new cost could mean for struggling borrowers and the
entire housing market during such a tumultuous economic time.
The FHFA said the pair, bailed out by the government during the
2008 financial crisis, were facing at least $6 billion in
pandemic-driven losses, including through forebearance and other
relief programs. FHFA Director Mark Calabria has said one of his
top priorities was boosting capital at the enterprises as part
of a bid to return them to the private market as soon as
possible.
The delay could give Congress time to come up with other ways to
help boost the pair's finances before the fee takes effect,
according to agency officials.
(Reporting by Pete Schroeder; Editing by Paul Simao and
Bernadette Baum)
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