Newsroom

A bill supported by NAFCU to prohibit the use of guarantee fees as offsets for unrelated federal programs was reintroduced this week by Reps. Mark Sanford, R-S.C., and Brad Sherman, D-Calif. NAFCU sent a letter of support to the lawmakers yesterday.

H.R. 916, the "Risk Management and Homeowner Stability Act of 2017," would amend the Congressional Budget Act of 1974 to state that the budgetary effects of any House or Senate bill that includes a provision that increases g-fees won't be counted except for legislation used for financial reforms to the secondary mortgage market.

NAFCU Vice President of Legislative Affairs Brad Thaler thanked Sanford and Sherman for reintroducing the bill in a letter Wednesday and noted NAFCU's support for the measure.

NAFCU has long urged lawmakers not to use Fannie Mae and Freddie Mac's credit risk g-fees as a funding offset. The association has consistently advised against raising g-fees, which would raise borrower costs and could put a damper on lending.

NAFCU continues to advocate for housing reform that guarantees credit unions access to the secondary mortgage market, with fair pricing based on loan quality rather than volume.