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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)

5 From 2014 through 2019, however, the average G-fee increasingly became based upon a well-established financial markets concept: 6 to generate, after covering expenses, a proper market return (also known as the “cost of capital”) on the capital that is required to support the risks being taken in the business.

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