NAR Letter to Representative Sherman Regarding G Fees as Budget Offset

On September 13 NAR sent a letter to Representative Brad Sherman.

 

The letter outlines the need for a fix to a recent proposal that would use guarantee fees (g-fees) charged by Fannie Mae and Freddie Mac (the GSEs) as a budget offset. G-fees are a critical risk management tool used by the GSEs to protect against loan losses and should be used only to manage the companies’ operations and credit risk. NAR strongly opposes the use of g-fees for any use other than its intended purpose—to cover losses that occur in the natural course of GSE business.