NAR Supports Crapo's G-fee Bill
On March 1, 2015, NAR sent a letter to the full Senate. The letter urges members to cosponsor S. 752, which would establish a scorekeeping rule to ensure that increases in guarantee fees (G-fees) of Fannie Mae and Freddie Mac will not be used to offset spending that increases the deficit. The bipartisan legislation, introduced by Senators Crapo (ID) and Warner (VA), 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.