Respond to NAR’s Call-for-Action; Vote on g-fees expected

Last week, the National Association of Realtors® issued a Call-for-Action asking you to send a message to lawmakers regarding Fannie Mae and Freddie Mac’s credit risk guarantee fees (g-fees). NAR opposes a proposal to use g-fees to offset costs associated with the extension of highway programs. I urge you to respond to this Call-for-Action today, as it’s anticipated that federal legislators may vote on this issue soon.

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. Increasing g-fees for other purposes – even just extending the current fee increase for four years – effectively taxes potential homebuyers and consumers looking to refinance their mortgages.

As you know, the real estate market continues to recover. We’re seeing stronger markets throughout Pennsylvania, but we oppose anything that could hinder that continued improvement. An increase in g-fees would disturb the housing recovery as it would raise the cost to purchase or refinance a home. Particularly, NAR believes this action will disproportionately impact low and moderate income borrowers, as well as first-time homebuyers who are currently the majority users of FHA loans.

Realtors® believe that implementing a 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. NAR understands the need to reauthorize highway programs and help strengthen our country’s infrastructure. However, NAR strongly believes that taxing homeowners as a transportation funding mechanism places an unnecessary long-term burden on consumers and prevents Fannie Mae and Freddie Mac from effectively managing their risk.

As a Realtor®, you know that every increase to the real estate transaction affects consumers. It’s so important that you express your concerns about these proposed changes to your Congressmen. Tell them to oppose the use of g-fees to fund transportation.