President Obama today signed H.R. 22, the Surface Transportation Reauthorization and Reform Act of 2015, which does NOT include an extension of the higher guarantee-fees set to expire in 2021. The bill funds several highway and transit-related projects, with monies coming from a variety of sources. While the Senate version of the long-term transportation bill included this “mortgage tax” to pay for transportation infrastructure, the final version does not. This is a HUGE win for REALTORS® and their clients.
In November, the House of Representatives approved a long-term-transportation bill with an amendment to exclude the tax. C.A.R. and the National Association of REALTORS® vigorously opposed the “add-on” fee for all new conforming mortgages in order to pay for transportation infrastructure. This "g-fee," which was a disguised tax on home buyers, would have cost average California home buyers more than $8,100 over the life of their mortgage on a new home purchase or refinance.
Nearly 31,000 California REALTORS® called or emailed Congress to oppose this proposal.