CHLA Urges Congress To Protect Homeownership By Rejecting Mortgage Fee Hikes

As Congress begins deliberations on a reconciliation bill under the Budget Resolution (H. Con. Res. 14), Community Home Lenders of America (CHLA) is urging lawmakers to protect the cost of homeownership and reject any proposals that raise mortgage fees to fund unrelated federal spending.

“As a general principle, CHLA believes that mortgage fees on federal mortgage loan programs (FHA, VA, RHS, and Fannie Mae and Freddie Mac) should NEVER be increased unless such fee hikes are based on actuarial risk or safety and soundness considerations,” said Scott Olson, Executive Director of CHLA.

In a letter to Congressional leaders, CHLA specifically calls on Congress to:

  1.  Repeal the 10-basis point GSE guarantee fee increase enacted four years ago to fund unrelated federal programs.
  2.  Reject any new mortgage fee hikes on loans backed by the Veterans Administration (VA) or Government-Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac.

CHLA cautions that ongoing budgetary pressures could lead to renewed efforts to use mortgage-related fees, particularly on VA and FHA loans, as a pay-for mechanism in the reconciliation process. The organization opposes this approach as it disproportionately burdens middle- and low-income homebuyers.

“Increasing fees on VA, GSE, or FHA loans would be a step backwards, essentially placing a surcharge on veterans and working families to subsidize unrelated government spending,” said Olson. “Congress should reject this policy and stand up for American homeowners.”

CHLA reaffirms its commitment to ensuring access to affordable mortgage financing and will continue to advocate for policies that strengthen, not penalize, homeownership across the country.