CAI FHFA Resource Page:
This page provides updates and summaries on CAI's efforts in response to the proposal by FHFA related to so-called "deed-based transfer fees".
The proposal, issued by FHFA on August 12, 2010, would ban Fannie Mae, Freddie Mac, and any Federal Home Loan banks from purchasing mortgages for any property that has a deed-based transfer fee payable at the time the property is transferred. At this time the proposal is a draft, and FHA is accepting comments through October 13, 2010. If implemented as drafted, the proposal would have a substantial negative impact on many communities associations and on the housing market across the nation.
Posted below are actions, alerts, and updates on how CAI is responding to this issue. The most recent postings appear below and older postings toward the bottom of the page.
Please email any questions or comments to government@caionline.org with the subject line of "FHFA".
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FHFA UPDATE: FHFA ISSUES MAJOR REVISIONS TO DEED-BASED TRANSFER FEE PROPOSAL (2/2011)
Federal Housing Finance Agency (FHFA) has issued a revised draft of their proposed regulation on private transfer fees and their revisions reflect the comments expressed by CAI and its members. CAI expressed strong concerns over FHFA’s assertion that such fees do not benefit community associations. The new draft proposal will be open for public comment and CAI will follow up with a full analysis and sample comments in the coming days. Read More...
FHFA Comment Period Closes – What Happens Next? (10/2010)
On Friday, October 15, 2010, the comment period for the proposed Federal Housing Finance Agency (FHFA) regulation on private transfer fees closed. Prior to the comments closing, more than 2,600 organizations and individuals submitted comments to the FHFA. CAI submitted comments opposing the regulation and included a copy of our member-developed deed-based transfer fee survey. CAI G&PA staff worked with other stakeholder organizations and shared our survey data on the impact of the proposed FHFA regulation. CAI’s survey was cited in the comments of several other organizations including the National Association of Homebuilders (NAHB), The Coalition to Save Community Benefits and The Leading Builders of America. CAI members from across the country also submitted comments in opposition to the proposed FHFA regulation. Read more...
Pennsylvania Representative Stands with Community Associations in Opposition to the FHFA Transfer Fee Regulation (10/2010)
As CAI members know, the proposed regulation on banning federally backed mortgages for any property in a community with a deed based transfer fee would have a devastating effect on community associations. Forty-nine percent of community associations utilize deed-based transfer fees to fund reserves, capital projects or to supplement operating expenses. If enacted, the FHFA regulation would ban any federally backed mortgage for property in a community association with such a fee, rendering properties unmarketable. Read more...
CAI Comments on FHFA Proposed Transfer Fee Regulation (10/2010) CAI has submitted comments to the Federal Housing Finance Agency (FHFA) in response to their proposed regulation on so-called “Private Transfer Fees.” CAI’s comments call on the FHFA to rescind the proposal, allow time for state and federal legislators to address the issue and to consider the reality of how such fees are used by community associations in any future regulatory proposal. CAI noted that the application of such a regulation to community associations, which would impact the ability of property in community associations to qualify for most mortgages, would be catastrophic. Read more...
CAI Releases “For the Common Good: Use of Community Transfer Fees by Community Associations” (9/29/2010) While the Federal Housing Finance Agency seeks to ban all deed-based transfer fees, CAI members have stepped forward in record numbers to provide data on how such fees are used in their communities. The data provides insights on how deed-based transfer fees are charged by community associations, benefit homeowners and support association finances. The survey data reflects feedback from close to 1,000,000 housing units in 1,254 communities in 40 states. Read the full report here.
CAI Transfer Fee Survey Response – Unprecedented (9/22/2010) A few weeks ago, the G&PA department issued a call for member data on the use of private transfer fees in communities across the country. This data will be used to help us file comments on the draft regulation issued by the Federal Housing Finance Agency that would ban Fannie Mae and other federal entities, from purchasing mortgages in any community with such a fee. The effect of this rule as drafted would mean that residents in communities with such fees would be locked out of obtaining mortgage financing to sell the properties.
CAI’s member response to this survey has been unprecedented. Close to 1,300 communities completed the survey. Read more...
How to Contact your Congressman and Senators on FHFA Regulation (9/17/2010) As you know, the proposed regulation issued by the Federal Housing Finance Agency (FHFA) would prohibit Fannie Mae, Freddie Mac and the Federal Home Loan Banks from buying mortgages in community associations with deed-based transfer fees. This would mean that most, if not all, banks would stop issuing mortgages for properties in community associations with such provisions. If enacted, this rule would immediately render such properties unmarketable. CAI’s survey of its members indicates that up to one quarter of the 24 million residences in community associations would be affected. Read more...
CAI Efforts on FHFA are Making Headlines, Inspiring Action (9/14/2010) Builders and developers across the country are rallying against a new proposal issued by the Federal Housing Finance Agency (FHFA) that could jeopardize scores of sales at master planned communities nationwide and put the home builders and Realtors on opposite sides in what could prove a lobbying battle in Washington. (Read more...)
CAI Calls on Communities to Comment on FHFA Proposal (9/8/210) On August 16, 2010, the Federal Housing Finance Agency (FHFA) published a Notice of Proposed Guidance directing Fannie Mae, Freddie Mac and the Federal Home Loan Bank System (the GSEs) to stop investing in mortgages on properties encumbered by private or deed-based transfer fees. The Notice contains a discussion regarding FHFA’s opinion that such restrictions would be beneficial for the mortgage markets and consumers and requests comment and opinions from interested parties on the proposal. If your community has a deed-based transfer fee, find out how you can submit comment here.
CAI Gathers Data to Fight FHFA Regulation (9/7/2010) By now, many of you may have heard about a proposed regulation from the Federal Housing Finance Agency (FHFA) issued on August 13, 2010. CAI has prepared a survey to collect data on the use of these fees in the context of community associations. Your response to this survey will help us protect associations and gather information to use in our response to FHFA and in other mortgage market reform efforts in the months ahead. As of September 17, 2010, the survey is now closed. However, click here to read more about survey!
FHFA Proposed Ban on Private Transfer Fees - FAQ (8/24/2010)
On August 13, 2010, the Federal Housing Finance Agency (FHFA) issued a proposed regulation to ban the use of deed-based or covenant-based transfer fees. The proposal would prohibit Fannie Mae, Freddie Mac and all federal home loan banks from purchasing mortgages for properties in communities with deed-based transfer fees. While the target of the regulation appears to be private transfer fees that require a payment to a third party each time a property is sold, the proposed rule, as currently written, would include deed-based transfer fees used by many community associations. Read more ...