WASHINGTON – The Coalition to Stop Wall Street Home Resale Fees applauds the Federal Housing Finance Agency (FHFA) for proposing guidance today to restrict government-sponsored enterprises from investing in mortgages with Wall Street Home Resale Fees, also known as private transfer fees, a new legally dubious financial scheme that forces homeowners to pay a fee to sell their homes and steals home equity from consumers.

 

“We applaud the FHFA for recognizing the dangers of private transfer fees and taking the necessary steps to ensure that this financial scheme does not make further inroads into our country’s real estate market via Fannie Mae, Freddie Mac and Federal Home Loan Bank mortgage purchases,” said Kurt Pfotenhauer, CEO of the American Land Title Association. “FHFA’s decision enhances consumer protection and guards our fragile housing market from unnecessary financial risks.”

 

Manhattan-based Freehold Capitol Partners is leading the push to add these fees to home purchase contracts.  The fees require that a percentage of the final sale price of a home be paid to a private third party every time the property is sold, typically for 99 years. Freehold is attempting to then sell the right to collect these fees on Wall Street—all the while padding investors’ pockets while stealing equity from homeowners.

 

In its Notice of Proposed Guidance, the FHA found that Wall Street Home Resale Fees “increase the costs of homeownership”; “limit property transfers or render them legally uncertain”; and “contribute to reduced transparency for consumers.” Furthermore, FHFA determined “that the fees fund purely private streams of income for select market participants and do not benefit homeowners.”

 

"FHFA's ruling to restrict these fees is positive news for the men and women in uniform who serve this country," said Jon Soltz, Co-Founder and Chair of Vote Vets. "Because military families generally move every three years, these fees hurt the military more than anyone."

 

FHFA’s restrictions are the latest in a series of government actions to limit Wall Street Home Resale Fees. To date, 18 state legislatures in Arizona, California, Delaware, Florida, Hawaii, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, North Carolina, Ohio, Oregon, Texas and Utah have recognized the dangers of Wall Street Home Resale Fees and have restricted their use.

 

“These fees add no benefit or value to a property, and are clear examples of Wall Street investors trying to profit from unsuspecting homeowners,” said Pfotenhauer. “Our Coalition thanks FHFA and Acting Director Edward J. DeMarco for recognizing the risk that the fees pose to home owners and home buyers and taking action to ban this dangerous scheme before it threatens our real estate market.”