Controversial g-fee hike provision passes House
Members of the U.S. House of Representatives passed a controversial bill Friday that could eventually hike g-fees on government-back mortgages another year to cover immigration-related expenses. The bill still has to make its way through the U.S. Senate.
House Bill 6429 is not even related to mortgages. The bill is designed to provide 55,000 visas for foreign workers qualified in the areas of science, technology, engineering and mathematics.
But to pay for the provisions, the bill would extend guarantee fee hikes enacted to cover tax cuts passed in 2011 through October of 2022. The g-fee increase was originally supposed to expire in 2021.
David Stevens, CEO of the Mortgage Bankers Association, pushed back at the legislation last week before it passed the House.
"Fannie and Freddie's guarantee fees are supposed to be used to help offset the risk inherent in providing mortgages, and any increases to those fees should be used for that purpose," the MBA's Stevens said in a public statement.
Here's a link to the House Roll call to see who voted for and against the bill.