{"id":15388,"date":"2020-03-16T10:17:04","date_gmt":"2020-03-16T15:17:04","guid":{"rendered":"https:\/\/theamericangenius.com\/housing\/?p=15388"},"modified":"2020-03-16T10:17:04","modified_gmt":"2020-03-16T15:17:04","slug":"what-are-g-fees-and-why-does-the-govt-want-to-raise-and-take-them","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/homeownership\/what-are-g-fees-and-why-does-the-govt-want-to-raise-and-take-them\/","title":{"rendered":"What are G-fees and why does the gov’t want to raise and take them?"},"content":{"rendered":"

As many Americans know, our national budget has a yearly deficit. These deficits have placed many lawmakers into situations that resemble a not so comfortable space in between a rock and a hard place. This results in many discussions over the budget each year, and in some cases, a government shut down until a path is chosen for the country. On March 6, 2020, 33 organizations sent a letter<\/a> to multiple lawmakers that could have significant impacts on the decisions of the housing market for not only fiscal year 2021 but over 10 years later.<\/p>\n

The topic of the letter focused around \u201cg-fees\u201d, or also known as guarantee fees<\/a> within the \u201cGSEs\u201d (Fannie Mae and Freddie Mac). These g-fees, \u201ccover projected credit losses from borrower defaults over the lifetime of the loans, administrative costs, and a return on capital\u201d according to the Federal Housing Finance Agency. <\/p>\n

When these g-fees are hoisted up, like in 2011 to fund a two-month payroll tax relief period, it raises the cost of homeownership nationwide for 10 years. The letter gives the example of a \u201c10 basis points [raised] in g-fees amounts to an additional $5,100 in mortgage payments on the average GSE loan amount of $255,000.\u201d In short, homeowners or those looking to get a mortgage loan would almost instantly see an increase in how much they would pay if g-fees were raised.<\/p>\n

Besides laying out the details of how g-fees function, the letter also focused on this cohort\u2019s logical objection for not raising g-fees. These organizations stated they \u201cfirmly believe that g-fees should only be used as originally intended: as a critical risk management tool to protect against potential mortgage credit losses.\u201d and not used to fund non-housing related programs and becoming the nation\u2019s \u201cpiggy bank\u201d. <\/p>\n

If you are a homeowner, or can be impacted by mortgages in any situation, it might be time to start saving or speak up. This is a current issue as the president’s proposed budget for fiscal year 2021 suggests using g-fees again to help fund loses in the budget.<\/p>\n

These are the organizations who are asking for this reconsideration through their letter:<\/p>\n

American Bankers Association
\nAmerican Escrow Association
\nAmerican Land Title Association
\nAsian Real Estate Association of America
\nCenter for Responsible Lending
\nCommunity Associations Institute
\nCouncil for Affordable and Rural Housing
\nCredit Union National Association
\nDistrict of Columbia Association of REALTORS
\nEnterprise Community Partners, Inc.
\nHousing Policy Council
\nIndependent Community Bankers of America
\nInstitute of Real Estate Management
\nLeading Builders of America
\nManufactured Housing Institute
\nMortgage Bankers Association
\nNational Apartment Association
\nNational Association of Federally-Insured Credit Unions
\nNational Association of Home Builders
\nNational Association of Housing Cooperatives
\nNational Association of Real Estate Brokers (NAREB)
\nNational Association of REALTORS\u00ae
\nNational Community Reinvestment Coalition (NCRC)
\nNational Community Stabilization Trust
\nNational Council of State Housing Agencies
\nNational Fair Housing Alliance
\nNational Housing Conference
\nNational Housing Resource Center
\nNational Multifamily Housing Council
\nNational NeighborWorks Association
\nThe Community Mortgage Lenders of America
\nThe Realty Alliance U.S. Mortgage Insurers<\/p>\n","protected":false},"excerpt":{"rendered":"

(HOMEOWNERSHIP) Trade groups are banning together to push politicians to not raise G-fees to cover their own ancillary budget, It really would only restrict home buyers.<\/p>\n","protected":false},"author":337719,"featured_media":15389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[602],"tags":[1926,323,1234],"class_list":["post-15388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-homeownership","tag-g-fees","tag-homeownership","tag-real-estate-news"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2020\/03\/marco-oriolesi-wqLGlhjr6Og-unsplash-1.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/15388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337719"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=15388"}],"version-history":[{"count":4,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/15388\/revisions"}],"predecessor-version":[{"id":15393,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/15388\/revisions\/15393"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/15389"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=15388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=15388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=15388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}