Newsroom
NAFCU, trades: Refrain from using GSE fees as funding offset
NAFCU joined with 32 other trade organizations spanning the housing finance ecosystem to urge Congress to "refrain from utilizing Fannie Mae and Freddie Mac ("the GSEs") guarantee fees ("g-fees") as a source of funding offsets." NAFCU has previously supported legislation to prohibit the use of guarantee fees as offsets for unrelated federal programs and has long advised against raising g-fees, which would raise borrower costs and could put a damper on lending.
The coalition, in the letter sent Friday, noted that g-fees were previously raised 10 basis points over 10 years to fund a two-month period of payroll tax relief in 2011, which harmed homebuyers and will continue to do so until the provision expires in 2021.
"G-fees are a critical risk management tool used by the GSEs to cover operating costs and losses that occur in their operations," wrote the organizations. "Increasing g-fees for other purposes – as was included in the President’s Fiscal Year 2021 budget proposal – effectively taxes potential homebuyers, as well as existing homeowners seeking to refinance their mortgages."
Additionally, the group thanked Sens. David Perdue, R-Ga., and Robert Menendez, D- N.J., and Reps. Brad Sherman, D-Calif., and Lee Zeldin, R-N.Y., for introducing bipartisan legislation in the 116th Congress that would prohibit the use of g-fees for this purpose and asked both chambers of Congress to take up the legislation.
"The unintended effects of any proposed g-fee increase or extension – no matter how well-intended – will be to raise the cost of homeownership for middle-class Americans, while curtailing refinance activity that helps to keep creditworthy borrowers in their homes," they argued. "Moreover, implementing yet another g-fee increase will hinder policymakers’ abilities to execute the necessary reforms required of the GSEs in the years ahead."
As the leading voice for credit unions with housing reform discussions, NAFCU has led efforts to ensure credit unions' unfettered access to the secondary mortgage market is maintained in any housing finance solution, and has consistently shared its core principles for housing finance reform with lawmakers and administration officials.
Share This
Related Resources
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Add to Calendar 2024-04-11 14:00:00 2024-04-11 14:00:00 Regulation E: Impacts Across Your Institution Dive into regulatory excellence with, Regulation E: Impacts Across Your Institution. This webinar is tailored to empower you with the knowledge and strategies necessary to effectively implement the Electronic Funds Transfer Act (EFTA) and Regulation E within your operations. You’ll explore how to apply Regulation E across various business areas to ensure compliance obligations are met with precision. Key Takeaways Learn the basics of EFTA and Regulation E Understand how to apply Regulation E at your organization to detect processes and transactions that require Regulation E compliance Discover how Regulation E may apply to a large breath of areas in your institutions and functions for which you may rely on third-party vendors Review recent enforcement activity for non-compliance with EFTA and Regulation E Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 11, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Regulation E: Impacts Across Your Institution
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.