Guarantee Fee

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.