Industry ‘Vigilant’ to Halt Congressional G-Fee Hikes
March 1, 2013
The mortgage industry remains on guard and is fully prepared to rebuff further attempts by lawmakers to squeeze Fannie Mae and Freddie Mac guaranty fee revenue to fund non-government-sponsored enterprise related pet projects, experts say. Congress’ passage in early 2012 of a payroll tax cut extension bill set a dangerous precedent and emboldened lawmakers to look to the GSEs as a piggy-bank by mandating an increase and using the funds to offset the costs of other programs, according to Robert Zimmer, head of external affairs at the Community Mortgage Lenders of America. “I’m shocked that I’m not hearing anything right now on diverting g-fees to other parts of the federal budget,” said Zimmer. “I think there has been some hardening in town that this is a bad idea but when [Congress is] desperate for money, anything can happen.”
Moves by the Trump administration are disrupting the economy and the federal agencies that deal with the housing market. Bob Broeksmit, president and CEO of the MBA, isn’t sure how it’s all going to play out.
House Republicans called for the Department of Housing and Urban Development to roll back the FHA payment supplement program.
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