Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Blue Springs, Mo., issued the following statement on the Senate’s plan to raise the Fannie Mae and Freddie Mac guarantee fees (g-fees) in order to provide funding for transportation programs:
“It is outrageous that Congress would consider using g-fees to cover the cost of programs completely unrelated to housing. With first-time home buyers still hesitant to enter the marketplace, it makes no sense to impose what amounts to a new tax on homeownership that will disproportionately affect low- to moderate-income borrowers. These fees should only be used for their intended purpose – to protect against mortgage defaults and ensure the safety and soundness of the housing finance system.
“Now that the Senate vote on cloture has failed and the motion to proceed on the bill cannot move forward, senators need to go back to the drawing board and do the right thing. Before attempting to advance the transportation bill again, senators must strip the g-fee provision out of the legislation and look for other means to fund the measure. Homeownership cannot, and must not, be used as the nation’s piggybank.”