Tuesday, March 26, 2013

G-fees on Housing GSEs Should Not Be Used to Fund Unrelated Programs

Last Friday, bank and credit union trade groups jointly sent a letter to Senate Banking Committee Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho) supporting an amendment that would prevent Congress from using guarantee fees charged by Fannie Mae and Freddie Mac to fund future unrelated programs.

“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from faulty loans, and should be used only to manage the companies’ credit risk,” the letter said. “Increasing g-fees for other purposes effectively taxes potential homebuyers and consumers wishing to refinance their mortgages.”


  1. What unrelated programs and projects and which lawmakers are behind it?

  2. I too, would like to know what projects and which senators. This is how the last crisis started, with Clinton, his FNMA buddy Johnson running the "new"mortgage market and the 2 village idiots Dodd and Frank playing economist and then HUD now NY czar Cuomo playing police.
    Who is behind this brilliant idea please, Mr. Leggett?
    Thank you.

  3. This was a nonbinding amendment meant to reflect the will of the Senate. It was agreed to in Senate by Unanimous Consent.

    The goal was to ensure an increase in the G-fee was not used to offset provisions that increase the deficit.



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.