With all the talk about programs and efforts to increase homeownership among minorities and low to moderate income households, comes just another example of Congress speaking out of both sides its mouth.
Just recently the House overwhelmingly defeated a bill that would have extended a 10 basis point increase of the Fannie/Freddie guaranty fees (g-fees) to be used to fund road repairs. It seems that they got the message that these fees were intended to protect taxpayers and repay the bailout of these agencies. Hold that thought…
Some members of our illustrious Senate have some different ideas. Although the House squashed the proposal, some in the Senate are still considering such a plan to use the g-fees to fund road repair. Why not? Another good way for the Administration to hide a tax on the middle class.
Those struggling to buy a home will continue to pay more for a conventional loan because of the added expense of this tax. That was never the intent of these g-fees. They were initiated to provide some cushion, like insurance, for the agencies to offset costs and expenses associated with defaulted loans so that the tax payers were not be saddled with these costs.
Today, part of these g-fees are being used to fund road work. That is due to expire in 2021. The House Bill would have extended their use through 2025. What’s next? Extend and possibly increase these fees to cover other government programs. What programs? Where does it stop? How long can the working class continue to fund a runaway government through ongoing hidden taxes? When do the working people run out of money?
Some Senators say enough is enough and are pushing to ensure the g-fees are not used for any purpose other than that originally intended. Senators Michael Crapo (R/Idaho) and Mark Warner (D/VA) introduced legislation that would prohibit the use of the g-fees to offset any federal spending. Crapo and Warner are urging the Senate to pass a budget resolution to prohibit the agency guaranty fees to be used as a piggy-bank by the government other programs.
No more hidden tax on homeownership! Write to your Senators and demand that they support the Crapo/Warner budget resolution to prevent the use of the Fannie/Freddie guaranty fees to offset any federal spending.