[Congressional Record Volume 144, Number 135 (Thursday, October 1, 1998)]
[Extensions of Remarks]
[Pages E1858-E1859]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CONFERENCE REPORT ON H.R. 6, HIGHER EDUCATION AMENDMENTS OF 1998

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                               speech of

                           HON. DOUG BEREUTER

                              of nebraska

                    in the house of representatives

                       Monday, September 28, 1998

  Mr. BEREUTER. Mr. Speaker, this Member rises today to express his 
opposition to a particular provision in the H.R. 6 Conferene Report, 
which would increase the Ginnie Mae guaranty fee to nine basis points 
effective on October 1, 2004--a three basis point increase over the 
current level. This provision was not included in the House version of 
H.R. 6 legislation. However, the Senate version did contain this three 
point increase in the Ginnie Mae guaranty fee. Unfortunately, the H.R. 
Conference Report which includes this Senate

[[Page E1859]]

passed provision is both illconceived and contrary to the spirit of 
promoting home ownership.
  Under current law, Ginnie Mae guarantees payments to ivestors if 
mortgage servicers are unable to make the scheduled payments. In turn, 
the mortgage servicers are charged a present guaranty fee of six basis 
points.
  This Member is opposed to a three basis point increase in the Ginnie 
Mae guaranty fee for the following two reasons.
  No. 1. The cost of a three basis point increase will likely be passed 
in part to the homebuyer.
  This provision in the H.R. 6 Conference Report will increase the 
costs of a mortgage servicer to lend. While some of this increase in 
basis points will likely be borne by the mortgage servicer, it is 
inevitable that some of this increase will be passed to the homebuyer 
as an unncessary tax for buying a home. This Member is opposed to 
passing on such avoidable costs to the homebuyer.
  No. 2. The Senate had earlier rejected an increase in basis points 
for the Ginnie Mae guaranty fee.
  On July 17, 1998, the Senate in considering the fiscal year 1999 VA/
HUD appropriations bill, tabled the Nickles Amendment by a 69-27 vote. 
The Nickles Amendment would have increased the Ginnie Mae guaranty fee 
by six basis points. The VA/HUD appropriations bill appears to be a 
more suitable forum for debate and consideration of such a guaranty fee 
increase than in H.R. 6 Conference Report.
  In closing, this Member opposes the provision in the H.R. 6 
Conference Report which increases the Ginnie Mae guaranty fee by three 
basis points.

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