December 14, 2011
The Honorable Harry Reid
Senate Majority Leader
522 Hart Senate Office Building
Washington, DC 20510
Dear Senator Reid:
On Behalf of the 100,000 Mortgage Originators in the United States and the 5,000 members of NAMB- The Association of Mortgage Professionals, I want to let you know that we also object to the House passing HR 3630 and sending it to the Senate. You have already received a letter from The Mortgage Bankers Association, The National Association of Homebuilders and the National Association of Realtors stating that they are also objecting to this outrage.
This bill will again be a burden on all Homeowners and customers trying to refinance their homes. By placing additional fees on all of the loans made through Fannie Mae and Freddie Mac, these g-fees, you are again forcing the cost to own a home upwards. And these fees are only for those loans going to Fannie and Freddie. Not HUD or the VA loans. Many customers that are able to refinance at this point will be forced to pay additional fees just to close their loan. These fees were originally set up to offset some of the GSE losses and not pay for a tax cut for Americans. You need to tell the House that they need to go back to the table and start over.
There has to be another way to get this accomplished without hurting the Housing sector. We believe that to divert these fees from their intended use will only slow down the housing industry renewal that is just starting to surge again. These fees were intended to help manage risk and enhance capital for the GSE’s, not help pay for the tax cut. If we are to rebound in the housing sector from this financial meltdown, we need to make it easier for loans to be completed without additional and extra fees.
If we are to continue to grow and help the economy by refinancing the current home ownership, we need to find another way to fund this tax reduction.
Sincerely,
Donald J. Frommeyer, CRMS
NAMB President
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