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Eliminate Excess Fees Charged To Aspiring Homeowners

For over 10 years, the Government Sponsored Enterprises (GSEs) –Fannie Mae and Freddie Mac – have been allowed to “double charge” aspiring homeowners across America for the same risk.


America’s Homeowner Alliance (AHA) is calling for an end to this unfair practice immediately. Not a reduction – not a whittling of the fees – but a complete elimination of the excess and unfair fees charged by these government-controlled agencies and endorsed by their Regulator.

enabled by their Regulator – the Federal Housing Finance Agency


For decades, these two GSEs have been allowed to set the Capital and Reserve and Leverage requirements for the Private Mortgage Insurance industry to provide insurance protection against potential losses on mortgage loans purchased from lenders by these GSEs. Essentially, the GSEs mandate that the lender secure this Private Mortgage Insurance before the loan is eligible for sale to the GSEs. The lender charges the consumer obtaining the mortgage loan the premiums to pay the insurance to protect the GSEs from loss. Stating that again – the consumer pays the fees for the insurance to cover potential losses by the GSEs. On top of that, beginning in 2008, the GSES also started charging extra fees on certain loans that already have Private Mortgage Insurance (paid by the consumer) to certain consumers with lower credit scores or lower downpayments – or in some cases these excess fees have nothing to do with the consumer credit or downpayment – it could be simply because the GSEs want to charge more to people buying condominiums. These extra fees are called Loan Level Price Adjustments (LLPAs). They could have just as easily been called – EXCESS FEES FOR RISK ALREADY COVERED. 


These excess fees charged for risk already protected by Private Mortgage Insurance must be eliminated immediately. No private sector entity could ever get away with double charging consumers for the same risk. In addition, the AHA calls for the Consumer Financial Protection Bureau (CFPB) to do a thorough investigation and refund of any consumer since 2008 who may have been charged these excess LLPA fees.


The undersigned consumers support this petition to Members of Congress, the FHFA and the CFPB to eliminate these excess LLPA fees and reimburse the overcharged consumers from 2008 to the date of elimination of these fees.

As a benefit of signing this petition, you will receive a Free Lifetime Membership in the America's Homeowner Alliance. No additional information or steps are necessary. 

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