Current Federal Issues                

HR 4893
This bill will prevent Congress from using the Fannie / Freddie Guarantee Fee as a source of revenue for other budget items.

The Guarantee Fee is a small fee assessed mortgage lenders to compensate Fannie and Freddie for their risk in guaranteeing payments to buyers of Fannie / Freddie MBSs.  Although the fee is small, it adds up to big money.

Congress is frequently looking for ways to increase revenue and little known niches are attracitve because few people are aware, few people will object and it does not appear to be a tax.  However, in the case of Guarantee Fees, every Fannie / Freddie borrower will pay a slightly higher interest rate if "G-Fees" are increased.

This is not the first time Congress has tried to do this but HR 4893 would make it the last.

HR 4893 Text

HR 4893 Status

HR 4893 Co-Sponsors

Housing Wire article

FHFA History of Guarantee Fees

FHFA Report to Congress on Fannie / Freddie Guarantee Fees

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