I don’t usually run around urging people to write their Congressional representatives, but I do want to let Realtors, Loan Officers and consumers know about something that’s a bit odd so that you can decide for yourselves what you think about it. Back in 2011, Congress enacted guarantee fees (G Fees) that get reflected in the interest rates paid by borrowers who get loans guaranteed by Fannie Mae and Freddie Mac. G Fees were supposed to expire in ten years, but Congress is thinking about extending them as part of – get this – a highway bill. Also interesting is that G Fees are charged on home loans but the money often goes to fund other federal programs like highways. The Association of Mortgage Professionals is opposing the extension of G Fees, with its president saying, “G Fees have essentially become a hidden tax on home buyers that can discourage home ownership and to price many more young and low to moderate income borrowers out of the market, which is especially alarming given that rental costs are also making it difficult for the less affluent to find a place to live.”
I didn’t write it, but I absolutely approve this message! ~Charlie Lawson
Realtors and Loan Officers: What do you think? We’d love to hear your feedback!