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.”
What unrelated programs and projects and which lawmakers are behind it?
ReplyDeleteI 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.
ReplyDeleteWho is behind this brilliant idea please, Mr. Leggett?
Thank you.
This was a nonbinding amendment meant to reflect the will of the Senate. It was agreed to in Senate by Unanimous Consent.
ReplyDeleteThe goal was to ensure an increase in the G-fee was not used to offset provisions that increase the deficit.