Trade groups have thrown their support behind a bill which would prohibit the use of the fees for anything not related to mortgages
A group of top housing trade organizations came together to show its opposition to government use of Fannie Mae and Freddie Mac guarantee fees to cover federal spending not related to mortgages, according to the US Finance Post.
Through a letter to two congressmen, the organizations united to show their support for a proposed bill that would make sure that guarantee fees are not used for unrelated spending.
The letter was sent to Rep. Mark Sanford (R-S.C.) and Rep. Brad Sherman (D-Calif.) – sponsors of the Risk Management and Homeowner Stability Act of 2017 (H.R. 916).
“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from loans that default,” the letter said. “Increasing g-fees for other purposes imposes an unjustified burden on homeowners who would pay for any increase through higher monthly payments for the life of their loan.
“Our organizations were deeply troubled when g-fees were raised back in 2011 to fund a two-month extension of payroll tax relief – a tax that homebuyers and owners will continue to pay until 2021. Since then, whenever Congress has considered using g-fees to cover the cost of programs unrelated to housing, we’ve informed lawmakers that homeownership cannot, and must not, be used as the nation’s piggybank.”
The group includes the American Bankers Association, the American Land Title Association, the Community Mortgage Lenders of America, the Consumer Mortgage Coalition, the Credit Union National Association, Habitat for Humanity International, the Housing Policy Council of the Financial Services Roundtable, the Independent Community Bankers of America, Leading Builders of America, the Mortgage Bankers Association, the National Association of Federal Credit Unions, the National Association of Home Builders, the National Association of Realtors, and U.S. Mortgage Insurers.
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Through a letter to two congressmen, the organizations united to show their support for a proposed bill that would make sure that guarantee fees are not used for unrelated spending.
The letter was sent to Rep. Mark Sanford (R-S.C.) and Rep. Brad Sherman (D-Calif.) – sponsors of the Risk Management and Homeowner Stability Act of 2017 (H.R. 916).
“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from loans that default,” the letter said. “Increasing g-fees for other purposes imposes an unjustified burden on homeowners who would pay for any increase through higher monthly payments for the life of their loan.
“Our organizations were deeply troubled when g-fees were raised back in 2011 to fund a two-month extension of payroll tax relief – a tax that homebuyers and owners will continue to pay until 2021. Since then, whenever Congress has considered using g-fees to cover the cost of programs unrelated to housing, we’ve informed lawmakers that homeownership cannot, and must not, be used as the nation’s piggybank.”
The group includes the American Bankers Association, the American Land Title Association, the Community Mortgage Lenders of America, the Consumer Mortgage Coalition, the Credit Union National Association, Habitat for Humanity International, the Housing Policy Council of the Financial Services Roundtable, the Independent Community Bankers of America, Leading Builders of America, the Mortgage Bankers Association, the National Association of Federal Credit Unions, the National Association of Home Builders, the National Association of Realtors, and U.S. Mortgage Insurers.
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