Friday, March 13, 2020

Trade Groups: G-Fees Should Not Be Used as Budget Offsets

A broad coalition of housing and finance trade organizations in a letter to congressional leaders on March 6 urged them not to use Fannie Mae and Freddie Mac guarantee fees as a source of funding offsets. The groups warned lawmakers increasing g-fees for that purpose would effectively serve as a tax on potential homebuyers and homeowners seeking to refinance their mortgages. ‌ ‌

“G-fees should only be used as originally intended: as a critical risk management tool to protect against potential mortgage credit losses,” the groups wrote. “Our organizations have united to emphatically let lawmakers know that homeownership cannot, and must not, be used as the nation’s ‘piggy bank.’” ‌ ‌

The groups urged lawmakers to consider bipartisan legislation that was introduced in the 116th Congress by Sens. David Perdue (R-Ga.), Robert Menendez (D-N.J.), Reps. Brad Sherman (D-Calif.) and Lee Zeldin (R-N.Y.) that would prohibit the use of g-fees as a budgetary offset.

Read the letter.

No comments:

Post a Comment

 

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.