[Congressional Record Volume 145, Number 35 (Friday, March 5, 1999)]
[Senate]
[Pages S2370-S2371]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE CONCURRENT RESOLUTION 16--EXPRESSING THE SENSE OF CONGRESS THAT 
THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GUARANTY FEE SHOULD NOT BE 
                INCREASED TO PROVIDE INCREASED REVENUES

  Mr. GRAMS (for himself and Mr. Gorton) submitted the following 
concurrent resolution; which was referred to the Committee on Banking, 
Housing, and Urban Affairs.

                            S. Con. Res. 16

       Whereas the Government National Mortgage Association, known 
     as Ginnie Mae, was established as a wholly owned corporation 
     of the United States to facilitate the world-wide sale of 
     investment securities backed by mortgages insured or 
     guaranteed by the Federal Housing Administration (FHA) or the 
     Veterans Administration (VA), which is now the Department of 
     Veterans Affairs;
       Whereas Ginnie Mae assesses a fee to lenders issuing such 
     securities and notes for the guaranty, by Ginnie Mae, of the 
     timely payment to investors of principal and interest of the 
     securities and notes;
       Whereas the guaranty fee currently charged by Ginnie Mae, 
     at a rate of 6 basis points, has produced significant net 
     revenue for the Federal Government each year;
       Whereas Ginnie Mae is actuarially sound and its reserves 
     are sufficient to protect the taxpayers of the United States 
     from any loss;
       Whereas the cost of home ownership is increasing, thereby 
     making the dream of home ownership unattainable for many 
     families in the United States;
       Whereas FHA and VA loans are used primarily by first-time 
     and minority homeowners to achieve the dream of home 
     ownership;
       Whereas Congress should seek to eliminate barriers to 
     affordable housing and reduce the costs of home ownership; 
     and
       Whereas proposals to increase the Ginnie Mae guaranty fee 
     above the current rate, if enacted, would constitute a tax on 
     home ownership, would increase the costs of owning a home, 
     and would ultimately deny many Americans the opportunity to 
     own a home; Now, therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring), That it is the sense of the Congress that any 
     increase in the guaranty fee assessed by the Government 
     National Mortgage Association above the rate currently in 
     effect constitutes an unnecessary and unwarranted tax on home 
     ownership that cannot be justified as sound public policy or 
     as necessary for financial soundness of the Government 
     National Mortgage Association and, therefore, should not be 
     used to provide increased revenues for the Federal Government 
     to offset other expenditures.

  Mr. GRAMS. Mr. President, today I am submitting a Senate Concurrent

[[Page S2371]]

Resolution expressing the sense of the Congress that guaranty fees 
charged by the Government National Mortgage Association--or Ginnie 
Mae--should not be increased as a means of offsetting additional 
Federal spending. I am pleased that my colleague from Washington, 
Senator Gorton, is joining me in submitting this resolution.
  As the Federal budget process proceeds over the next few months, 
there will inevitably be attempts to manipulate revenues to fund pet 
projects. Unfortunately, what Washington calls revenues, Americans call 
taxes. This resolution serves notice that taxes on American 
homebuyers--in this case through higher fees on the securities used to 
fund the loans--should not be used to fund general government.
  I am pleased that a companion resolution--H. Con. Res. 10--has been 
introduced in the House. I urge my colleagues to join in expressing 
their sense that increased taxes on homebuyers to fund general 
government spending are inappropriate, and I invite my colleagues to 
add their name to this resolution.

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