February 15, 2011
The Federal Housing Finance Agency has proposed a rule banning Fannie Mae, Freddie Mac and the Federal Home Loan Bank from buying mortgages encumbered by private transfer fee covenants unless the fees are used for the direct benefit of the encumbered properties. The rule would only apply to transfer fee covenants created after publication of the final rule. Comments will now be accepted on the revised rule before the final rule becomes public. The ALTA has advocated for limiting these fees which can result in no benefit to homeowners whose properties are burdened by the covenants.