NAHREP urges Congress to refrain from utilizing Fannie Mae and Freddie Mac (“the GSEs”) guarantee fees (“g-fees”) as a source of funding offsets in Infrastructure package

NAHREP joined a coalition of institutions that span the entire housing finance ecosystem to ask Congress to refrain from using Fannie Mae and Freddie Mac (“the GSEs”) guarantee fees (“g-fees”) as a source of funding offsets in Infrastructure package. G-fees should only be used as originally intended: as a critical risk management tool to protect against potential mortgage credit losses and to support the GSEs’ charter duties.

Given today’s housing affordability and supply constraints, lawmakers must avoid taking any steps that may exacerbate affordability challenges, which could in turn have negative consequences for the broader economy. The unintended effects of any proposed g-fee increase or extension will be to raise the cost of homeownership for all Americans, and low- to moderate-income and underserved individuals in particular.