A fee charged by issuers of mortgage-backed securities. The fee is meant to help cover the issuer's expenses and reduce the risk of loss or default. It also serves the purpose of making such securities more marketable and liquid, therefore helping to bring in investment capital, and allowing all participants to reduce their risk exposure. Effectively allowing mortgages to be offered to borrowers with lower credit quality, even with an expected higher rate of default.
Related information about guarantee fees:
- Guarantee Fees Definition | Investopedia
Definition of 'Guarantee Fees'. Fees charged by mortgage-backed securities ( MBS) providers, such as Freddie Mac and Fannie Mae, to lenders for bundling, ...
- Fannie Mae, Freddie Mac Guarantee Fees Boosted by Regulator ...
Sep 1, 2012 ... Fannie Mae and Freddie Mac, the U.S.-owned mortgage-finance companies, will raise by an average of 10 basis points the fees they charge ...
- Menendez outraged over proposal to raise mortgage guarantee fees ...
Sep 20, 2012 ... A New Jersey senator expressed outrage on Thursday over a federal housing agency's plans to raise mortgage guarantee fees in his state.
- FHFA Announces Increase in Guarantee Fees - Federal Housing ...
Aug 31, 2012 ... it has directed Fannie Mae and Freddie Mac to raise guarantee fees (g-fees) on single- family mortgages by an average of 10 basis points.
- DeMarco: Guarantee Fees will Continue Gradual Rise
Sep 11, 2012 ... Guarantee fees (G-fees) are likely to continue the pattern of gradual increases initiated since Freddie Mac and Fannie Mae were placed in ...
- FHFA: GSEs Will Continue to Increase Guarantee Fees
1 day ago ... Fannie Mae and Freddie Mac seller/servicers which have already been hit with two recent guarantee-fee increases should expect even more, ...
- Fannie, Freddie guarantee fees set to increase | Crain's New York ...
Aug 31, 2012 ... The so-called guarantee fees, or g-fees, that the two government-controlled companies charge lenders to guarantee new loans will increase by ...
- FHFA Announces Increase in Guarantee Fees for Fannie Mae and ...
Sep 5, 2012 ... On August 31, the Federal Housing Finance Agency (FHFA) announced that it has directed Fannie Mae and Freddie Mac to increase the fees ...