Mortgage

G charges shouldn’t be used to finance infrastructure payments: condominium teams

One source of funding that Congress shouldn't use to fund the bipartisan infrastructure is mortgage guarantee fees from state-sponsored companies, a coalition of banking and real estate groups said.

The original list of potential sources of funding for the $ 579 billion plan did not include G fees. However, with elements such as increased tax revenues gone, groups who signed the letter fear that Congress negotiators may turn to them for other resources.

The letter, signed by the Mortgage Bankers Association, the American Bankers Association, and the National Association of Realtors, references past attempts by Congress, including a successful one in 2011, to use G-fees to fill budget holes.

"We have pointed out on numerous occasions that we were deeply concerned when g-fees were raised 10 basis points for 10 years to fund a two-month period of wage tax relief in 2011," the letter to Sens said. Kyrsten Sinema, D-Ariz. and Rob Portman, R.-Ohio. "This surge has hurt home buyers by increasing home costs in every part of the country – even during the decade-long lifespan of the regulations that expires in September."

After this mandatory increase came into effect, several attempts were made to extend its expiry, including funding another wage tax exemption as well as paying a bill for highway infrastructure.

As a result, the Senate tried several times to restrict the ability to increase g-fees, including a 2013 resolution that would have required a super majority of 60 votes to approve such a move. Several bills have been tabled, most recently in 2019, banning the use of G fees as a gap filler for the federal budget, although none have been passed.

“We all agree … in our belief that the use of G-fees as a funding mechanism is totally inadequate and shifts the burden of payment of infrastructure-related initiatives onto the current and future homeowners in the country. The benefits of affordable home ownership come to families, communities, and our economies; we simply must not jeopardize these benefits by trying to unnecessarily increase g-fees, "the letter reads.

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