Guarantee Fee

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Guarantee Fee

A sum paid by the importer to the guarantor, usually as a percentage per annum of the face value of the bills or notes being guaranteed.

Guarantee Fee

A fee charged to holders of a mortgage-backed security by the issuer. The guarantee fee helps cover the issuer's expenses but its most important use is to lessen the issuer's risk of loss or default in case too many of the mortgages underlying the security themselves default.
References in periodicals archive ?
GAO was asked to examine (1) the extent to which RUS' borrowers provide electricity service to nonrural areas and (2) the potential financial risk to taxpayers and amount of loans and grants that the guarantee fees will fund.
For taking the credit risk, the GSEs receive a guarantee fee, but the credit risk on the MBS is not very great, and the guarantee fees they receive do not add significantly to their bottom line.
The Code does not provide specific rules detailing the character or source of guarantee fees.
5 billion in a wide, but unspecified, range of additional business transaction fees, including FHA guarantee fees.
The survey also asked industry professionals what impact proposed higher guarantee fees imposed by Fannie Mae and Freddie Mac would have on the market.
In addition, Genworth filed a response and shared recommendations for the FHFA's request for public input regarding the current state of Guarantee Fees ("G-fees").
In order to obtain approval from the European commission for the arrangement, ING agreed in 2009 to pay to the State additional guarantee fees, for which a one-time pre-tax provision was booked against 2009 results.
As previously noted, Fitch believes a Scottish Re downgrade might affect Ballantyne Re in several ways, including: Ballantyne Re's financial guarantee fees increase if Scottish Re's IFS rating is downgraded below 'A-', Scottish Re is the key counterparty in a reinsurance contract between the two entities, and the possibility that Scottish Re's downgrade might affect policyholder lapse or primary insurer contract termination rates, thus, changing cash flow patterns or resulting in adverse selection.
14, 2014 /PRNewswire-USNewswire/ -- USMI today submitted its response to the Federal Housing Finance Agency (FHFA) request for input (RFI) regarding the guarantee fees (g-fees) that Freddie Mac and Fannie Mae charge to lenders.
Pursuant to the goals outlined in the FHFA strategic plan, Acting Director De-Marco announced an additional increase in guarantee fees (g-fees) for Fannie and Freddie loans the day before Watt was confirmed.
In September 2010, Finance Ministers from both countries met and agreed the terms and conditions of the facility including repayment periods, interest rates, arrangement fees, guarantee fees and loan thresholds per project.
An increase in guarantee fees diminishes the cash flow available to pay the note holders.