Nation: NAR Supports Sanford/Sherman G-fee Bill

NAR along with several housing and mortgage industry trade groups sent a letter thanking Reps. Sanford (R-SC) and Sherman (D-CA) for reintroducing H.R. 916, the “Risk Management and Homeowner Stability Act.” The legislation would amend the Congressional Budget and Impoundment Control Act of 1974 to prohibit the use of Fannie Mae and Freddie Mac’s guarantee fees (g-fees) to pay for government spending. Moreover, the bipartisan bill recognizes that diverting revenue from these risk-based fees both places an additional burden on the backs of homeowners and is bad public policy.

The purpose of the G-fee is to prospectively guard against credit losses at Fannie Mae and Freddie Mac. G-fees should only be used to protect taxpayers from mortgage. Each time G-fees are extended, increased and diverted for unrelated spending, homeowners are charged more for their mortgages and taxpayers are exposed to additional risk for the long-term. (http://narfocus.com/billdatabase/clientfiles/172/2/2840.pdf)

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