Today the National Association of Realtors released a statement urging Congress to protect home buyers from excessive taxation, the announcement from NAR below.
NAR submitted letters to the U.S. Senate and House of Representatives requesting all Members of Congress oppose any legislation that utilizes Fannie Mae and Freddie Mac’s credit risk guarantee fees (g-fees) to offset costs associated with the extension of highway programs. G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from faulty loans, and should be used only to manage the companies’ credit risks. An increase in g-fees would disturb the housing recovery as it would raise the cost to purchase or refinance a home. NAR believes this action will disproportionately impact low and moderate income borrowers, as well as first-time homebuyers who are currently the majority users of FHA loans. Additionally, implementing a g-fee increase that is unrelated to housing needs could also act to hinder the necessary reforms required of the housing finance system for the foreseeable future. NAR understands the need to reauthorize highway programs and help strengthen our country’s infrastructure. However, NAR strongly believes that taxing homeowners as a transportation funding mechanism places an unnecessary long-term burden on consumers.