Please Comment by Friday on "Private Transfer Fee Covenants"

The Federal Housing Finance Agency has proposed guidance that would preclude, Fannie, Freddie and the Federal Home Loan Banks from purchasing or investing in any mortgages with private transfer fee covenants. Bad idea!

While we at NCB Capital Impact support regulation of private transfer fee covenants, to preclude them alltogether would be a significant blow to efforts to encourage long-term affordable homeownership. Properly disclosed fees are an important source of income to pay for the asset management of long-term affordable homeownership.

We intend to submit a comment and we encourage everyone who cares about this issue to send a comment by FRIDAY to: regcomments@fhfa.gov, Include: "Guidance on Private Transfer Fee Covenants,(No. 2010-N-11)" in your subject line.

I attach a copy of the "Notice of Proposed Guidance" and a comment letter prepared by the California Department of Housing and Community Development in opposition to the proposed guidance.

Thanks in advance for your comment.

Attachments:

2010 Oct FHFA Transfer Fees.pdf, 468 KB

Replies to This Discussion

Permalink Reply by Barbara Walsh, PP/AICP on October 18, 2010 at 4:22pm

I missed the deadline......but what are these fees that are being discussed?

Permalink Reply by Doug Kleine on February 2, 2011 at 3:53pm

The proposed rules have been changed to exempt fees that stay within the housing complex. So resale fees collected by condos and co-ops are safe. Of course the rule is just proposed and not final. Comments are again welcome.