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CAMP Call to Action: Increase in G-fees for Fannie Mae and Freddie Mac
December 16, 2011 | Leave a Comment
CAMP Call to Action!
December 16, 2011
Guarantee Fees May Be on the Rise. Act NOW to Stop It.
Currently, the Congressional Leaders in the House and Senate (Senators Reid (D-NV), McConnell (R-KY) and Representatives Boehner (R-OH) and Pelosi (D-CA)) are negotiating an extension of the payroll tax cut and unemployment insurance, both set to expire at the end of the year. In addition, Congress is working to prevent a 27% cut in Medicare payments to physicians known as the “Sustainable Growth Rate.” In order to pass this final package of extensions, Congress must find “offsets” to pay for this large package. One of the offsets being debated is a provision to raise the g-fees for Fannie Mae and Freddie Mac. The increase will not be used to protect the GSEs from losses, but will be deposited in the Treasury as a pay-for this tax cut extension. The proposal is estimated to raise $38 Billion in revenue.
Please contact your Representative and Senators and tell them the following:
“Please tell the Representative/Senator to oppose efforts to raise Guarantee Fees on Fannie Mae and Freddie Mac to pay for the payroll tax cut extension. These fees will place an unprecedented tax on mortgage finance and will penalize the consumer. Furthermore, the revenue generated by this tax is not going to protect the taxpayer and minimize losses but is being deposited in the U.S. Treasury to offset the costs of this new legislation.
The Guarantee Fees charged by Fannie and Freddie should be used to manage their risk exposure and enhance capital. They should not be diverted for purposes unrelated to the safety and soundness of the housing finance system.
Please tell the Representative/Senator to contact their Leadership and tell them to keep out this tax on home buyers. Oppose any increase to the Guarantee Fees on Fannie and Freddie. Thank you.”
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