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House Rule 916, the Risk Management and Homeowner Stability Act, was recently introduced as bi-partisan legislation by Representatives Mark Sanford (R-SC) and Brad Sherman (D-CA).
The bill is intended to restrict increases in agency Guaranty Fees to finance reforms to the secondary markets and prohibit use by Congress to fund other programs or cover budget shortfalls for such programs.
“G-fees”, as they’re commonly known in the mortgage financing industry, are used by Fannie and Freddie as a risk tool to offset the potential for loss from defaulting loans. These fees increase the cost of borrowing to a homebuyer.
To use these for other budgetary purposes outside mortgage financing places an unfair tax on homebuyers. A tax they will pay for the life of their loan.
In 2011, Congress passed a bill to use a G-Fee increase to fund a payroll tax cut. The MBA and other industry groups have since been fighting to prevent further increases to offset budgetary needs.
These groups sent a letter to Congress in support of HR 916 and more than 2,000 MBA members have also voiced their support through MBA’s Call to Action.
Join the MBA, and other industry trade groups, to fight increases by contacting your Representatives in the House and providing your support for HR 916 before the ATM runs dry.
