NAMB Mortgage Professionals Call for End to Hidden Tax on Home Buying Consumers

07/22/2015

 

Media Contact:
Name: John Councilman, CMC, CRMS
Title: President
Phone: 239-267-2400
Email address: president@namb.org


Name: John H. P. Hudson, CRMS
Title: Communications Chair
Phone: 817-247-4766
Email address: communications@namb.org 

 

NAMB Mortgage Professionals Call for End to Hidden Tax on Home Buying Consumers

G-Fees Have More Than Doubled Following Federal Takeover of Fannie Mae and Freddie Mac...Increasing Costs To Consumers

Washington, D.C. - July 22, 2015 - NAMB - The Association of Mortgage Professionals, is urging its membership to contact their U.S. Senators to oppose inclusion of an extension of increased Fannie Mae and Freddie Mac guarantee fees, commonly referred to as G-fees, in the omnibus highway bill that may be considered on the floor of the Senate as early as this week.
 
Originally enacted in 2011 and set to expire in 2021, the increased G-fees have essentially become a hidden tax on consumers being used to pay for unrelated federal programs, such as highway funding, according to the NAMB. G-fees are not readily detectable by borrowers in their mortgage documents since they are incorporated into the underlying rates paid by borrowers.
 
"Much of the rationalization for the increase in the G-fees was to bring private sector participation back into the market to compete against these higher GSE fees," said John Councilman, NAMB President. "This belief has proven to be faulty thinking since the increases have not attracted private capital to any real extent."
 
"The proposed extension of the G-fees being considered by the U.S. Senate will not attract private capital to the housing market, making this move in the Senate an obvious revenue raiser on the backs of consumers."
 
According to Councilman, Government Sponsored Enterprises like Fannie Mae and Freddie Mac enjoy substantial protection from the many onerous laws and regulations present in the mortgage market that are not available to private investors and the higher G-fees only hurt homeownership rates.
 
"The only real result of these never-ending higher G-fees will be to discourage home ownership and to effectively price many more young and low to moderate income borrowers out of the market," said Councilman. "This is especially alarming given that rental costs are also making it difficult for the less affluent to find a place to live."

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About NAMB - The Association of Mortgage Professionals:
Since 1973, NAMB-The Association of Mortgage Professionals has been the voice of the mortgage broker and mortgage loan originator industry, representing the interests of mortgage professionals and homebuyers. Its mission is to promote the highest degree of professionalism and ethical standards for members through programs and services such as education, professional certification and government affairs representation. In addition, NAMB members subscribe to a specific code of ethics and best lending practices that foster integrity, professionalism and confidentiality when working with consumers. For more information, visit www.namb.org. Follow NAMB @NAMBpros.

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