FHFA Announces Changes to Fannie Mae and Freddie Mac’s G-Fee Pricing
The Federal Housing Finance Agency (FHFA) today announced targeted changes to Fannie Mae and Freddie Mac’s guarantee fee pricing by eliminating upfront fees for certain borrowers and affordable mortgage products, while implementing targeted increases to the upfront fees for most cash-out refinance loans.
Fannie Mae and Freddie Mac guarantee the payment of principal and interest on their mortgage-backed securities and charges a fee for providing that guarantee. The guarantee fee, also known as a g-fee, covers projected credit losses from borrower defaults over the life of the loans, administrative costs, and a return on capital.
FHFA has announced that Fannie Mae and Freddie Mac will eliminate upfront fees for:
- First-time home buyers at or below 100% of area median income (AMI) in most of the United States and below 120% of AMI in high-cost areas;
- HomeReady and Home Possible loans (Fannie Mae and Freddie Mac’s flagship affordable mortgage programs);
- HFA (Housing Finance Agency) Advantage and HFA Preferred loans; and
- Single-family loans supporting the Duty to Serve program.
In addition, the upfront fees for cash-out refinance loans will be revised to reflect a range of pricing changes from a decrease of 1 percentage point to an increase of 1 percentage point.
The fee reductions will go into effect as soon as possible and the implementation of new fees for cash-out refinance loans will begin Feb. 1, 2023.
Latest from NAHBNow
Jul 02, 2025
From Disaster Relief to Challenging Gas Bans, HBAs are Making a DifferenceNearly two dozen HBAs received Association Excellence Awards for outstanding contributions they made on behalf of their members and communities in 2024.
Jul 01, 2025
One Big Beautiful Bill Act Will Spur Economic GrowthNAHB Chairman Buddy Hughes issued the following statement after the Senate passed the One Big Beautiful Bill Act.
Latest Economic News
Jul 02, 2025
Two or More Story Home Starts Rebound in 2024Over half of new single-family homes built in 2024 were two or more stories, according the recent release of the Census Bureau’s Survey of Construction (SOC). After declining in 2023, the share of homes started with two or more stories increased again in 2024, continuing the upward trend in place since 2020.
Jul 01, 2025
May Private Residential Construction Spending DipsPrivate residential construction spending fell by 0.5% in May, marking the fifth straight month of decreases. This drop was primarily driven by reduced spending on single-family construction. Compared to a year ago, total spending was down 6.7%, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.
Jul 01, 2025
Flat Job Openings for ConstructionThe count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the May Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).