Private Real Estate Transfer Fees Get Support of Former HUD Secretary
By Dennis Norman, on April 15th, 2011
Private Transfer fees have been something of a hot topic in the real estate community of late and something that has many professionals in the industry in opposite corners. This week, former Secretary of the Department of Housing and Urban Development, Henry Cisneros, weighed in with his support for private transfer fees in a letter to the Federal Housing Finance Agency. Continue reading "Private Real Estate Transfer Fees Get Support of Former HUD Secretary"
Feds Propose Rule on Private Transfer Fees
By Dennis Norman, on February 3rd, 2011
The Federal Housing Finance Agency (FHFA) back in August, 2010, published proposed "guidance" related to private transfer fee covenants that applied to Fannie Mae, Freddie Mac and Federal Home Loan Banks (the "regulated entities). The message in this guidance was that private transfer fees are bad and those regulated enterprises should stay away from lending on real estate subject to such covenants. Continue reading "Feds Propose Rule on Private Transfer Fees"
REALTORS® Support Proposal to End Private Transfer Fees
By News Desk, on November 8th, 2010
The National Association of Realtors® announced that it "strongly supports" the proposed guidance from the Federal Housing Finance Agency to prevent government-sponsored enterprises Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks from investing in mortgages encumbered by private transfer fee covenants.
In a letter sent to the Federal Housing Finance Agency (FHFA), NAR reiterated its opposition to these covenants, which developers often attach to a property to require payment of fees back to that developer each time the property is resold. These covenanted mandates are often extremely difficult to reverse once in place, and in many cases are attached to a deed for up to 99 years. Continue reading "REALTORS® Support Proposal to End Private Transfer Fees"
Mortgage Bankers urge Feds not to ban all private transfer fees
In a letter to the Federal Housing Finance Agency, John A. Courson, the President and Chief Executive Officer of the Mortgage Bankers Association (MBA) said that the MBA "opposes the practice of private third parties, such as developers, builders, licensing companies and real estate brokers, imposing private transfer fee covenants on residential real estate for the purpose of extracting future income." However, in his letter Mr. Courson goes on to say that the "MBA is concerned thatencumbering housing transactions with these types of PTFs will impede the marketability and affect the valuation of properties and thus the value of the loans and securities backed by such loans." In addition, the MBA points out that "distinctions among PTFs (private transfer fees) are necessary" as they do not oppose private transfer fee covenants that are: Continue reading "Mortgage Bankers urge Feds not to ban all private transfer fees"