Friday, January 10, 2014

G-Fees Should Not Be Used for Budget Offset

A coalition of bank, credit union, and other trade groups wrote to Congress on January 8 opposing the use of g-fees to offset the proposed extension of emergency unemployment benefits.

“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 groups said. “Increasing g-fees for other purposes effectively taxes potential homebuyers and consumers wishing to refinance their mortgages.”

Read the letter.
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