Our President wants new home buyers to pay for the proposed Unemployment Tax Extension by asking FHFA to, once again, raise the G-Fee on loans that are sold to Fannie Mae and Freddie Mac.These fees are passed on to home buyers by adding them to the interest rate. Congress continues to ask the President to identify a source of revenue to use in funding his new social spending initiatives and he found one, for the second time in 12 months! He tapped this revenue honey bucket last year when he quickly and quietly proposed a rule to lame duck FHFA Chairman De Marco to raise the G-Fee by 1/2 point, for 10 years, to fund some of his other deficit spending programs. This action snuck up on the mortgage and real estate industries. It was done before we could scream in defense of our customers, the home buying public. Mel Watt, who is the new Chairman of the Federal Housing and Finance Agency (FHFA), declined to sign the new proposal, asking for time to assess its merit and impact on housing. Time to scream people! Watt is the Presidents appointee. Do we really think that he will buck the President with one of his first acts as Chairman? Communicate with your Senators and Congressmen and with Mr. Watt about this sneaky tactic that is nothing more than a hidden tax increase charged only to home buyers. The audacity of funding deficit social programs on the backs of only those citizens who are trying to buy a home! They give speeches about how housing is the backbone of the economy and then sneak around and do this. Why? Because they can, it worked last year, and because they have done a thorough job of making the entire mortgage industry a scape goat for the past easy credit initiatives (Barney Frank....every American a homeowner) that they fostered and supported. I remind you that Fannie Mae and Freddie Mac have all but paid back every dime of TARP money, with interest. That the government and tax payers were made whole and actually earned interest, by the efforts of the mortgage industry, real estate industry and home buyers, who facilitated and contributed the revenue to do so, since 2008. Let the government know that we citizens dont appreciate their sneaky tactics. Let them know that the economic ripple effect of housing is the life blood of the economy in each of our communities and is not a honey bucket for funding non related government activities. We are a population of about 260,000 families here in Abq. N.M. Roughly 8000 families (3%) purchase a home each year. So, 3% of the families in my community are being asked to pay for the national extension of Unemployment Benefits this year. What will it be next year, and the year after. This hardly seems fair to me. How about to you?
Posted on: Thu, 16 Jan 2014 16:14:23 +0000
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