Realtors(R) Praise FHFA for Banning Private Transfer Fees
March 15 2012 - 4:53PM
Marketwired
The following is a statement by National Association of Realtors®
President Moe Veissi:
"As the leading advocate for homeownership and housing issues,
NAR applauds the Federal Housing Finance Agency for issuing a final
rule to restrict Fannie Mae, Freddie Mac and the Federal Home Loan
Banks from investing in mortgages encumbered by private transfer
fee covenants.
"NAR has long been vocal in its opposition to private transfer
fees since there is virtually no oversight on where or how fee
proceeds can be spent, on how long a private transfer fee may be
imposed, or on how the fees should be disclosed to home buyers --
and this often places an inappropriate drag on the transfer of
property.
"To that end, we fully support FHFA's decision to ban private
transfer fees, which we believe increase the cost of homeownership,
provide no benefit to home buyers and do little more than generate
revenue for developers or investors.
"NAR agrees with the exemption of private transfer fees paid to
certain organizations, including some home owner, condominiums, and
cooperative associations for funding capital reserves, capital
improvements, upgrades and major repairs.
"FHFA believes that some private transfer fees have a legitimate
place in real estate markets and should therefore be exempted from
the rule; however, FHFA must ensure that the fees paid are
reasonable and fully disclosed to home buyers well in advance of
closing and that there be some direct benefit to the home
owner."
The National Association of Realtors®, "The Voice for Real
Estate," is America's largest trade association, representing 1
million members involved in all aspects of the residential and
commercial real estate industries.
The National Association of
Realtors® supports
public policies and policymakers who support the positions of
Realtors® and their
clients and customers on private property rights, housing issues
and homeownership, regardless of political party affiliation.
Information about NAR is available at www.realtor.org. This and other news
releases are posted in the News Media section.
For further information contact: Sara Wiskerchen 202-383-1013
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