CUNA joined more than 30 financial organizations Monday in requesting that the U.S. Congress refrain from using guarantee fees (g-fees) as funding for any purpose other than supporting Fannie Mae and Freddie Mac safety and soundness.The letter, sent to leadership of both the Senate and the House, comes after the Senate added a provision increasing g-fees and extending the fee’s expiration date by four years to 2025 as part of a long-term highway funding bill (H.R. 22).The proposal contained in H.R. 22 would use the higher fees charged from 2021 to 2025 to fund highway programs.Fannie and Freddie charge lenders the g-fees primarilyto protect against credit-related losses in the mortgage portfolio. In 2011, those fees were raised by 10 basis points until 2021 to fund a two-month extension of the payroll tax.“We understand the critical need to reauthorize highway programs,” the CUNA coalition letter reads. “However, we are united in our belief that using g-fees as a funding mechanism for this purpose shifts the burden to homeowners and the housing sector in a manner that prevents the government-sponsored entities (GSEs) from effectively managing their risk and managing their duty to ensure that creditworthy borrowers from underserved communities has access to sustainable credit.” continue reading » 14SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr
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