Removing Barriers Blog

CUNA opposes using G-fees to pay for Highway Bill
Posted July 21,2015 by CUNA Advocacy

On July 21st, CUNA joined nine other banking and housing trade groups on a letter to Majority Leader Mitch McConnell and Minority Leader Harry Reid opposing the use of government guarantee fees (G-fees) as an offset to pay for H.R. 22, the “Drive Act” that extends funding for America’s transportation infrastructure.   The proposal would raise G-fees by 10 basis points for 10 years.  CUNA strongly believes that using G-fees collected by Fannie Mae and Freddie Mac to pay for programs unrelated to housing causes a significant cost and burden to credit union members, and represents a tax increase for borrowers.  

The housing market remains fragile.  The unintended impact of this increase to G-fees would increase the cost of obtaining a home which could potentially sideline prospective borrowers or prevent current homeowners to refinance mortgages at an affordable rate.  Locking in an increase in G-fee rate increase for 10 years would also delay much needed reforms to the nation’s housing finance system.  For these stated reasons, CUNA will continue to advocate that the G-fee structure remain unchanged.

For more information regarding this issue, please contact Sam Whitfield.