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Treasurer Stacy Garrity Commends Passage of Senate Resolution Urging Reversal of New Federal Mortgage Fees

New fees hurt homebuyers with good credit, large down payments

Harrisburg, PA - Treasurer Stacy Garrity today commended the state Senate for adopting Senate Resolution 134 and urging the Federal Housing Finance Agency to rescind new federal mortgage fees which are hurting homebuyers with good credit who have saved enough to make a large down payment.

Sponsored by Senators Devlin Robinson (R-37) and Kristin Phillips-Hill (R-28), the resolution requires letters calling for the reversal of mortgage fee increases to be sent from the state Senate to President Joe Biden, leaders in the U.S. Senate and House of Representatives, Pennsylvania’s congressional delegation, and the Federal Housing Finance Agency.

“Americans who play by the rules, earn good credit scores and save for years to make good down payments shouldn’t be penalized with higher mortgage fees. It’s completely backwards. With inflation and high mortgage rates already making it harder to buy a home, it’s ridiculous to put another hurdle in the way of hardworking Pennsylvanians. I applaud Sen. Robinson and Sen. Phillips-Hill for their leadership on this issue. We need to make sure the Biden Administration knows we absolutely oppose this absurd policy.”

Pennsylvania State Treasurer, Stacy Garrity

The fee increase, which affects borrowers who receive loans from Fannie Mae and Freddie Mac – about half of all U.S. mortgages – went into effect on May 1, 2023. It resulted in higher fees for homebuyers with good credit and large down payments.

“I have spoken to many Pennsylvanians who want to buy a home, but simply cannot afford to due to the extremely high inflation and interest rates. The policy that went into effect earlier this year has increased the financial hurdle for many borrowers on their path to pursue the American dream. I’m grateful for Treasurer Garrity’s leadership, and glad to partner with Sen. Phillips-Hill in encouraging and supporting hard-working citizens – not burden them with higher government fees. I am pleased that my Senate colleagues agree, and I urge the federal government to listen.”

Senator, Devlin Robinson (R-37)

“When Treasurer Garrity stood up for Pennsylvania taxpayers and led the effort at the federal level, I was proud to partner with Sen. Devlin Robinson at the state level to oppose this misguided policy out of Washington D.C. that would punish responsible homebuyers from achieving the American dream. Rewarding bad fiscal behavior would only compound the housing crisis many middle-class Pennsylvanians are already facing due to sky-high interest rates and runaway inflation caused by bad federal policies.”

Senator, Kristin Phillips-Hill (R-28)

Earlier this year, Treasurer Garrity led a national effort to reverse these new fees. She was joined by 33 fiscal officers from 26 states. In June, the U.S. House passed the Middle Class Borrower Protection Act, H.R. 3564, which would end these fees.

“The House measure to reverse this mortgage fee increase passed with bipartisan support. The U.S. Senate should pass it immediately, and President Biden should sign it into law.”

Pennsylvania State Treasurer, Stacy Garrity

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