Southern Maryland Association Of Realtors

Tell Congress Use Housing Dollars for Housing

Congress is debating how to pay for a 10 month extension of the payroll tax cut, an extension of unemployment benefits, and increased Medicare payments to doctors.

REALTORS® need to remind Congress that paying for these programs by raising the cost of housing is not acceptable.

REALTORS® oppose ANY increase in the fees borrowers pay to Fannie and Freddie and increasing FHA mortgage premiums to pay for non-housing programs. 

We need you to tell Congress to “Do No Harm” to housing.

Increasing the cost of a mortgage is not the way to end the housing downturn.

Suggested email content:


 

Message Subject: Housing Cannot Afford to Be Congress' Piggy Bank

Dear [Decision Maker],

As your constituent, and a REALTOR®, I urge you to resist using housing as a "pay-for" to support a 10-month payroll tax extension. The Temporary Payroll Tax Cut Continuation Act of 2011 which extended the payroll tax for two months established an initial 10-basis point increase to the guarantee fees (g-fees) on Fannie Mae, Freddie Mac, and FHA mortgages to cover the legislation's costs. That 2-month extension is costing new homebuyers approximately $4000 - $5400 over 30 years on a $200,000 loan, or $11 to $15 monthly.
Should you choose to tap housing again to "pay-for" non-housing related issues, Congress will impose another de-facto tax increase on homebuyers and raise costs on the very same Americans the underlying bill seeks to help.

Currently, my clients are finding it hard to get a mortgage because of the tight credit standards in the market place. This additional cost will force many potential homebuyers back to the sidelines, destabilizing the housing market.

We need a stable housing market to foster and support the recovery of nation's overall economy. Do no harm to the housing recovery. Oppose using the g-fees generated by Fannie Mae, Freddie Mac and FHA for their safety and soundness for any other purpose.
I appreciate the attempts by Congress to provide financial relief to the middle class, as well as foster job creation; however, this tax on middle class homeownership is not the way to do it.

Sincerely,

Take Action!

Instructions:
Click here to take action on this issue. 

 

What's-at-Stake:

• Congress is considering a further extension of the payroll tax cut and unemployment insurance and using “G-Fees” to pay for it

• “Temporary Payroll Tax Cut Continuation Act of 2011” extended the payroll tax cut and unemployment compensation provisions for two months.

• The legislation also required Fannie Mae, Freddie Mac, and FHA to raise their guarantee fees (g-fees) on mortgages by 10 basis points in order to off-set $35.7 billion of the extensions' cost.

• The increases which go into effect on April 1, 2012, and run through September 30, 2021 are estimated to cost consumers approximately $4000 - $5400 over 30 years on a $200,000 loan.

• On a monthly basis, the approximate increase will be $11-15.

• Additional cost burdens will destabilize the fragile housing market.

• A stable housing market will foster and support the recovery of nation's overall economy.

• NAR opposes using the g-fees generated by Fannie Mae, Freddie Mac and FHA for their safety and soundness for any other purpose.