July 28, 2015

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G-Fee is a Tax on Homebuyers, Refinancers

HPC, a division of the Financial Services Roundtable (FSR), applauds an amendment by Senators Mike Crapo and Mark Warner to remove a provision from the Highway Bill, currently being considered in Congress, that would effectively be a tax on homebuyers and refinancers.

G-Fee is a Tax on Homebuyers, Refinancers
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FOR IMMEDIATE RELEASE
July 28, 2015

Contact: Erika Reynoso
202-589-2410 | @fsroundtable
Erika.Reynoso@FSRoundtable.org

Contact: Alison Hawkins
202-589-2410 | @fsroundtable
Alison.Hawkins@FSRoundtable.org

G-Fee is a Tax on Homebuyers, Refinancers

HPC Sends Letter to Senators Crapo & Warner Supporting G-Fee Amendment to Highway Bill

Washington, DC—The Housing Policy Council (HPC), a division of the Financial Services Roundtable (FSR), applauds an amendment by Senators Mike Crapo and Mark Warner to remove a provision from the Highway Bill, currently being considered in Congress, that would effectively be a tax on homebuyers and refinancers.

G-fees are paid for by consumers in the form of higher interest rates, hitting both new homebuyers and those refinancing current loans. HPC, along with other housing trade associations, sent a letter today to Senators Crapo and Warner supporting the amendment.

“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from faulty loans. Increasing g-fees for other purposes – even just extending the current fee increase for four years – effectively taxes potential homebuyers and consumers looking to refinance their mortgages,” the letter said. “…implementing yet another g-fee increase unrelated to housing needs will act to hinder the necessary reforms required of the GSEs in the years ahead.”

The full letter can be read here: http://www.fsroundtable.org/joint-trade-letter-in-support-of-crapo-warner-amendment-on-g-fees/

For more information, contact Alison Hawkins at Alison.Hawkins@FSRoundtable.org

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The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs. Learn more at FSRoundtable.org.