In an attempt to prevent increases in fees paid by individuals seeking a mortgage through the GSEs when those fees are used to fund unrelated federal spending, Senators David Perdue and Bob Menendez, Chairman and Ranking Member of the Senate Banking Committee’s Subcommittee on Housing, Transportation, and Community Development, released a bill to regulate the usage of guaranteed fees (G-Fees).
“It’s time for Congress to cut the budget gimmicks and back-door tax hikes on middle class Americans,” said Senator Perdue, a member of the Senate Banking and Budget Committees, in a statement. “Any increase of guarantee fees should be used to protect taxpayers from mortgage losses, not as an artificial offset whenever Congress decides to spend more money. Ultimately, the federal government should budget responsibly for its needs, just like people in the real world.”
The bill has received support from key real estate and mortgage experts.
“The National Association of Realtors commends Senators David Perdue and Bob Menendez for taking action to secure America’s housing finance system,” said National Association of Realtors President John Smaby. “By preventing Congress from using GSE revenues to fund unrelated federal government spending, this legislation will help to protect taxpayers and countless potential homebuyers, ensuring Fannie Mae and Freddie Mac can continue helping families and credit worthy individuals achieve the American Dream. This is the mission Congress outlined for the GSEs when they were first chartered, and NAR will continue working with Congress to support the critical role Fannie and Freddie play in our housing market.”
“MBA applauds Senators Perdue and Menendez for their commitment to protect current and future homeowners from unnecessary costs,” said Mortgage Bankers Association President and CEO Bob Broeksmit. “Guarantee fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses. Any increase of these fees that is not related to housing is effectively a tax on home ownership. MBA will continue to advocate on behalf of policies that both ensure a healthy real estate market and provide consumers with affordable, sustainable housing choices.”