Passed last week, this $305 billion congress bill affects homeowners in a good way. It provides reauthorization of some initiatives supported by the National Association Realtors, according to Realtor Magazine.
The projects involved will help many homeowners and their families. They will improve transportation as well as develop more pedestrian-friendly communities. However, another big plus to the bill was that these initiatives will not be funded by mortgage guarantee fees as had been proposed by some lawmakers. President Obama signed the bill last Friday, December 5.
When the idea to use guarantee fees from Freddie Mac and Fannie Mae paid by homeowners came about, realtors responded by the numbers. In October, about 197,000 members of the National Association of Realtors responded to the NAR’s Call for Action and e-mailed Congress asking not to use G-fees to fund the transportation initiatives. 600,000 letters were sent.
NAR argued that using g-fees from Fannie Mae and Freddie Mac would make financing mortgages even more challenging for homebuyers. “Fannie and Freddie charge the fees to lenders to help cover their credit risks in return for guaranteeing conventional home mortgage loans originated by the lenders,” realtor.com wrote.
“G-fees are a critical risk management tool used by Fannie Mae and Freddie Mac to protect against losses from loans that default,” NAR said last month in a joint letter with other industry organizations to Congressional leaders. “Increasing g-fees for other purposes imposes an unjustified burden on the housing finance system.”
The decision not to include g-fees in the bill should stop mortgage costs from rising.
“This legislation recognizes the value of homeownership and the need to protect future homeowners from unnecessary costs,” NAR President Tom Salomone said last week. “NAR applauds the conference committee for standing with the homeowners of today and tomorrow.”
When a congress bill affects homeowners, millions of Americans could be affects financially. However, passing this bill is great news for homeowners, because it means helpful developments are coming for transportation and pedestrians. It is a relief that mortgage costs will not rise. If you have questions about the bill or want to find pedestrian friendly areas for a home in Miami, contact RE/MAX Paradise today!