On October 15, 2010, NAR submitted comments to the Federal Housing Finance Agency (FHFA) on their proposed guidance for the use of private transfer fees. The FHFA proposed guidance would prohibit the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, and the Federal Home Loan Banks from purchasing mortgages encumbered by private transfer fee covenants or securities backed by such mortgages.

NAR generally opposes private transfer fees. In the letter to Interim Director Edward DeMarco, NAR President Vicki Cox Golder states that private transfer fees increase the cost of homeownership and do little more than generate revenue for developers or investors and typically provide no benefit to homebuyers. However, NAR acknowledges that such fees may be appropriate for some organizations, such as homeowners associations, where there is a direct benefit to the homeowner, the fees are reasonable, and there is full disclosure. NAR also supports an exception for existing properties with private transfer fees. If existing properties are not excepted many homeowners will be unable to sell their homes, which could result in further disruption in real estate markets.

NAR Comments to FHFA on Private Transfer Fees >