(Realtor.org) -- 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.