In re G-Fees Antitrust Litigation, D.D.C. Civ. A. No. 05-114
KSG represents plaintiffs in a class action lawsuit against the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Plaintiffs allege that Fannie Mae and Freddie Mac colluded to set artificially inflated guarantee fees (or “G-Fees”) paid by mortgage borrowers. G-Fees are a component of the mortgage payment that millions of consumers pay each month; on a loan amount of $250,000, for example, the G-Fee typically averages $500 a year at the start of a mortgage and may total more than $11,000 over the life of a 30-year loan. As alleged in plaintiffs’ complaint, this illegal practice has generated enormous profits for Fannie Mae and Freddie Mac—an estimated $4 billion in 2004 alone.
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Originally Posted: 03/02/2006