Magazine article Mortgage Banking

Senators Pass Amendment Barring G-Fee Hikes to Offset Unrelated Spending

Magazine article Mortgage Banking

Senators Pass Amendment Barring G-Fee Hikes to Offset Unrelated Spending

Article excerpt

Senate Banking Committee Chairman Tim Johnson (D-South Dakota) and ranking member Sen. Mike Crapo (R-Idaho) introduced an amendment to the Senate's budget bill barring guarantee fee (g-fee) hikes charged by Fannie Mae or Freddie Mac to be used to finance future unrelated spending. The senators said the measure would prevent Fannie and Freddie "from being used as ATMs."

The amendment on government-sponsored enterprise (GSE) guarantee fees was co-sponsored by the entire Senate Banking Committee and passed by unanimous consent.

In a press release, Chairman Johnson hailed the measure's approval, saying, "As the Banking Committee continues to work to build consensus on housing finance reform, I am glad my Senate colleagues recognize the risks of using Fannie Mae and Freddie Mac as piggy-banks to finance short-term spending."

He added, "I am heartened that we could find consensus on a complex issue, and I look forward to finding more common ground in the future. …

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