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Current GSE Guarantee Fees Are Too Low to Be Consistent with Regulatory Capital: Does This Mean a Large Increase Is Coming?

The Stoop (NYU Furman Center)

In the years immediately following conservatorship (which began in September 2008), the FHFA increasingly took over setting the average G-fee. The FHFA then indicated that it ended this delay and began to employ the newer, higher capital requirement approach beginning in 2022.

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Government Mortgage Interest Rates: A Serious Discussion about the Intertwined Topics of Risk Adjustment and Cross-subsidies

The Stoop (NYU Furman Center)

This was described on the one hand as unfair, since it relied on overcharging low-risk borrowers “who had played by all the rules” and, on the other hand, as unduly incenting bad loans at the GSEs (by charging too little for high-risk loans) in a quasi-replay of the lead up to the mortgage bubble of 2005 to 2008.