The House of Representatives Transportation and Infrastructure Committee is considering legislation to reauthorize surface transportation programs.
One proposal would use Fannie Mae and Freddie Mac’s credit risk guarantee fees (g-fees) to fund transportation programs.
What is a Guarantee Fee (G-Fee)?
- GSE guarantee fees are charged by Freddie Mac and Fannie Mae to lenders for bundling, selling, and guaranteeing the payment of principal and interest on their Mortgage Backed Securities. These fees are passed on to mortgage seekers by the lender and add to the cost of obtaining a mortgage.
NAR strongly believes that taking g-fees would also prevent Fannie Mae and Freddie Mac from effectively managing their risk.
Take action now to prevent Congress from placing an unnecessary long-term burden on American homeowners!
Message
REALTORS oppose use of G Fees to Pay for Highway Bill
Dear [Decision Maker],
As a REALTOR and your constituent, I ask you to oppose any attempt by the House Transportation and Infrastructure Committee to use Fannie Mae and Freddie Mac's credit risk guarantee fees (g-fees) to fund the surface transportation reauthorization legislation.
G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from faulty loans, and should be used only to manage the companies' credit risks. I am opposed to the use of g-fees for purposes other than risk management.
Additionally, implementing an extension of the g-fee increase that is unrelated to housing needs could also act to hinder the necessary reforms required of the housing finance system for the foreseeable future.
I understand the need to reauthorize the highway programs and help strengthen our country's infrastructure. However, I also strongly believe that use of an extended g-fee to fund transportation programs saddles future homeowners with an unnecessary long-term burden, and prevents Fannie Mae and Freddie Mac from effectively managing their risk.
Please oppose the use of Fannie Mae and Freddie Mac's credit risk guarantee fees (g-fees) to fund transportation programs.
Sincerely,
[Your Name]
[Your Address]
[City, State ZIP]