Published: November 2012

The FHFA seeks to punish states for protecting their residents

Coalition: Americans For Financial Reform (AFR)

The Federal Housing Finance Agency (FHFA) has proposed to increase the guarantee fees (G-fees ) paid by homeowners for loans that originated in five states that the agency characterizes as having excessively high foreclosure costs.

Consumer Action joins the AFR in asking the FHFA to withdraw the proposed increase in G-fees that will hurt Connecticut, Florida, Illinois, New Jersey and New York. All have long-standing, as well as more newly adopted rules in place to assist homeowners facing foreclosure. These states have felt compelled to put in place their own laws only after repeated failures by the mortgage servicers to adhere to industry standards and contracts such as those established under the Home Affordable Modification Program (HAMP).

Other Organizations

Alliance for a Just Society
| Americans for Financial Reform
| California Reinvestment Coalition | Connecticut Fair Housing Center
| Consumer Action
| Empire Justice Center
| National Association of Consumer Advocates | National Community Reinvestment Coalition | National Fair Housing Alliance

More Information

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The FHFA seeks to punish states for protecting their residents   (AFRletterontheFHFA.pdf)