C.A.R. is opposing a provision in H.R. 22, the Senate version of the long-term Transportation bill, that creates a new tax on mortgages to pay for transportation infrastructure. While the U.S. Senate has already passed the bill, the House has not passed its version of the legislation.

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Ask your Member of Congress to OPPOSE the mortgage tax contained in H.R. 22, the Senate version of the Highway Bill! 

A portion of every conforming loan, (those backed by Fannie Mae and Freddie Mac) is a fee used to offset losses from bad loans and to pay for the administrative costs of running these companies. These are called guarantee fees (or g-fees). In 2011 Congress added on a tax of an additional 10 Basis Points, equal to .1% of the value of the loan, to the guarantee fee of every new loan to fund an extension of unemployment benefits. That "add on" tax was due to expire in 2021 and loans originated after that date would not be subject to the additional fee.

The U.S. Senate just passed a long-term transportation funding bill that extends the "add-on" fee until 2025 for all new mortgages in order to pay for transportation infrastructure. As an example using real numbers, buyers purchasing a median priced California home of $489,560 using a typical conforming loan with a 20% down payment and a 4% interest rate will pay an additional $8,100. This figure is sure to rise with an increase in sales prices. This "g-fee" is actually a disguised tax on homebuyers.

It's a mortgage tax, pure and simple.

The g-fee should only be used for its intended purpose.

It's a tax on homebuyers.

It will make mortgage finance reform more difficult

It will further erode housing affordability.