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  • Comment Detail

  • Date: N/A
    First Name: Jonathan
    Last Name: Gedde
    Email: j.gedde@namp.us
    Organization Type: other
    Organization: Nevada Association of Mortgage Professionals (NAMP

  • Comment

    The Nevada Association of Mortgage Professionals strongly opposes any increase to guarantee fees at this time. An increase in mortgage rates means and increase in the monthly payment per $1,000 borrowed. An increase of just .25% on a $250,000 mortgage has a corresponding payment increase of $37/month on a 30 year loan. At a time when our housing market is finally starting to recover, and our economy is showing sluggish improvement, the worst possible thing that could happen is an increase in mortgage rates.

    The average American home buyer measures the affordability of a house not on the purchase price, but on the payment amount. Upward movements in interest rate will put downward pressure on housing prices. To intentionally implement a rate hike at this point in the recovery would be foolish, as the potential consequences to the housing market and broader economy could be significant.

    I urge FHFA to table any G-fee increase for at least 12 months.

    Sincerely,

    Jon Gedde
    President - 2014
    Nevada Association of Mortgage Professionals