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.

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