Private Transfer Fee Covenants | TradingMarkets.com: "The Federal Housing Finance Agency (FHFA) is proposing to issue a Guidance, 'Guidance on Private Transfer Fee Covenants,' to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), and the Federal Home Loan Banks (the Banks) that the entities it regulates should not deal in mortgages on properties encumbered by private transfer fee covenants. Such covenants appear adverse to liquidity, affordability and stability in the housing finance market and to financially safe and sound investments."
This is a notice of a proposed rule change. Fred Pilot sent it along, with a note that CAI will probably oppose it. I keep hearing about HOAs and condos that are levying these private transfer fees.