My most recent need to “WTF?” something was in response to an absurd left hook leveled at Americans by our governing body and its cracker jack cast of elected officials.
First of all, thanks for passing the Tax Cut Continuation Act of 2011; you guys rock the Congressional floor! But after the confetti for their self-indulgent ticker tape parade settled it seems that we’re simply talking about a re-distribution here. A component of this act includes a mandate by the Federal Housing Finance Agency to have Fannie and Freddie increase their guarantee fee on mortgage loans.
In the classic “give with one hand and take away with the other” we all only needed one guess to figure who was going to assume these new fees….yes, borrowers; aka the tax-paying public. And while some may argue that a 10 basis point is not a significant increase, that’s not the point.
First of all, this was the result of a classic shell game (moving a decrease over to increase something else) and second of all, once a fee gets its foot in the door there’s only one direction for it to go. On top of that, this is just one more “small” increase atop a host of other “small” increases that have been passed on to the consumer and can make the costs of borrowing ridiculously unaffordable. Every huge pile of crap starts with one fee increase.
Our housing market really doesn’t need another hurdle and the borrowers who are contributing to its recovery shouldn’t be penalized and the tax payers shouldn’t be subject to blown smoke.
At the end of the day I guess it will probably be OK. Sometime soon, the abolishment of the guarantee fee will make for some “atta boy” news. I wonder where this “tax cut” will show up next?