On Thursday, October 22, 2015, the House of Representatives Transportation and Infrastructure Committee began consideration on the surface transportation reauthorization legislation.
One proposal would use Fannie Mae and Freddie Mac’s credit risk guarantee fees (g-fees) to fund transportation programs.
What is a Guarantee Fee (G-Fee)?
GSE guarantee fees are charged by Freddie Mac and Fannie Mae to lenders for bundling, selling, and guaranteeing the payment of principal and interest on their Mortgage Backed Securities. These fees are passed on to mortgage seekers by the lender and add to the cost of obtaining a mortgage.
NAR strongly believes that taking g-fees would also prevent Fannie Mae and Freddie Mac from effectively managing their risk.
Take action now to prevent Congress from placing an unnecessary long-term burden on American homeowners!
Due to the merger of the Real Estate Settlement Procedures Act and the Truth in Lending Act, two new forms are emerging. The Loan Estimate and the Closing Disclosure will replace the HUD-1 settlement and the Good Faith Estimate forms. You can access the new forms, and other materials to help you get accustomed to all these changes to your industry on the CFPB website.
Recently, NAR hosted a webcast explaining the changes to REALTORS® in Louisiana, Florida, and Washington. You can watch a recording of the webcast featuring attorney Phil Schulman and NAR Senior Counsel Finley Maxon online.