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 ?
Eliminate 7(a) guarantee fees for loans under $350,000 that go to small manufacturers.
In a statement Monday, the DOF said the BCDA's remittances last year, which included dividends and guarantee fees, were the highest since 2012, or when Republic Act (RA) No.
The Bases Conversion and Development Authority (BCDA) remitted record guarantee fees and dividends to the Bureau of Treasury last year that will fund the Armed Forces of the Philippines (AFP) modernization program.
8 Guarantee fee cover of future payments: Analysis carried out on the financial model shows that in 2045, the balance of guarantee fees received fully offsets the outstanding payments on the loan.
4m by it for these share dividends and the guarantee fees it required to pay the Government of Bermuda, which will be profitable to the bank's earnings going forward.
4 million in annual payments by Butterfield for Preference Share dividends and the guarantee fees payable to the Government of Bermuda, which will be accretive to earnings going forward.
4m in preference share dividends and Government of Bermuda Guarantee fees, equating to USD0.
Income from single-family guarantee fees grew in the quarter, while revenue from the company's investments portfolio declined due to the mandated shrinkage of that portfolio.
However, he said that given the overall budget picture, he could not guarantee fees will not increase again.
Increasing guarantee fees (g-fees), a trend Fitch expects to continue in 2013, is one of the more straightforward ways to attract private capital into the mortgage market.
The big new obligation, pitched as one of a number of Democratic initiatives to prevent overseas outsourcing of jobs, would affect the treatment of guarantee fees under source rules.
No further reduction may be applied to these guarantee fees.