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Democrats and the GOP are considering boosting the fees that Fannie (FNMA.OB) and Freddie...

Democrats and the GOP are considering boosting the fees that Fannie (FNMA.OB) and Freddie (FMCC.OB) collect from lenders as a way to finance the payroll tax cut. The idea could raise up to $38B over 10 years, but critics say the costs would be passed onto borrowers. Others don't want the giants to be used as a "slush fund."
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Comments (16)
  • enigmaman
    , contributor
    Comments (2688) | Send Message
     
    typical DC bureaucrats, that Democrats looked at this option as a credible solution, is not shocking, that some Republicans do as well is, but then again maybe not, what do Rep really stand for these days, they are MIA.

     

    Outside the DC beltway, liberal and conservative voters would tend to agree that the fees would be passed on to borrowers which would also hurt the struggling real estate industry.

     

    Its not rocket science is logics 101,

     

    Robbing Peter to pay Paul,no, this is robbing Peter to pay Peter.
    11 Dec 2011, 07:54 AM Reply Like
  • FCARONE
    , contributor
    Comments (596) | Send Message
     
    These guys are too intellectually challenged and corrupt to rob Peter to pay Peter. They only know how to rob Peter and rob him again and again, and never pay anyone but their capitalist cronies. Our country is taking a big beating from these crooked politicians. Let's vote them all out of office first chance we get. They're killing the country one crooked deal at a time.
    11 Dec 2011, 07:20 PM Reply Like
  • pokalolo
    , contributor
    Comments (592) | Send Message
     
    What makes you think the new guys/gals won't follow ! Power corrupts and the only hope is a constitution change for term limits. One term an out or it will never change an the Supreme Court has ruled it isn't valid currently for term limits,so, it will be a monster task an not likely to happen. We might see the poor rise up an try an keep Obama for 12 more years ! SAD.............
    12 Dec 2011, 04:44 AM Reply Like
  • pokalolo
    , contributor
    Comments (592) | Send Message
     
    Stupid is as stupid does. Gump for Congress ! As housing goes ,so goes the US economy an jobs. Thus help kill the comback !

     

    Were approaching 50% underwater why not make it worst ! Smart !
    11 Dec 2011, 08:02 AM Reply Like
  • kmi
    , contributor
    Comments (4527) | Send Message
     
    Backhanded way of acknowledging that eliminating the GSEs is unlikely, unpalatable, and too hard.
    11 Dec 2011, 08:43 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2899) | Send Message
     
    Mortgage rate is as low as it gets. A little fee on top of that is ok.
    11 Dec 2011, 08:48 AM Reply Like
  • Tack
    , contributor
    Comments (14317) | Send Message
     
    Endorsing the Government instituting a new "little" fee is like saying having a little cancer is ok. It won't stay little.
    11 Dec 2011, 09:13 AM Reply Like
  • phxcrane
    , contributor
    Comments (564) | Send Message
     
    Everybody keeps talking about how low the rates are. It's taxes keeping a lot of people from buying a home. House prices have gone down but real estate taxes have not. Why should housing subsidies payroll tax cuts? Typical job killing legislation. Democrats seem to be very good at figuring out ways to collect more money. They just are awful at job creation.
    11 Dec 2011, 10:14 AM Reply Like
  • Tack
    , contributor
    Comments (14317) | Send Message
     
    phx:

     

    Housing affordability is at all-time record highs. It's neither housing costs or taxes preventing a surge in sales. It's the fact that a deflationary mindset has set in, whereby people expect prices to be better next month, so they wait. It's exacerbated by the fed telling everybody that low rates will be maintained indefinitely, so they wait. And, banks don't like lending at artificially-low rates, either.

     

    Just let interest rates start to climb, rather than fall, and watch what happens to home purchases and loan demand. They will ramp up noticeably, as the "waiters" come off the fence. As well, if banks believe rates will continue to rise, they'll be more inclined to lend, especially floating-rate mortgages.
    11 Dec 2011, 10:19 AM Reply Like
  • BooGP
    , contributor
    Comments (50) | Send Message
     
    Which is exactly why the Fed should RAISE interest rates ever so slightly. People will start jumping into housing for fear of missing out on all time low interest rates.
    11 Dec 2011, 10:42 AM Reply Like
  • FCARONE
    , contributor
    Comments (596) | Send Message
     
    Are you kidding, rates should be around 3.25% for a 30-year fixed. Bernanke has been buying the long bond to achieve this rate level. The banks won't let it happen yet as they want to gorge themselves on the spread. Another rise in the GSE fee is just an insult. Let the lender's absorb it. They were bailed out, given free money and allowed to get away with fraud. The least they can do is absorb a 1/8 the fee.
    11 Dec 2011, 11:24 PM Reply Like
  • FCARONE
    , contributor
    Comments (596) | Send Message
     
    You're dreaming if you think people will jump into a quasi non-liquid market to buy an home at this time of continuing declining prices and no job stability. It will take more than a crummy 1/8th point rise to get buyers into the market in earnest. We need a growing economy, real job creation and certainty/ confidence in government policies going forward.
    11 Dec 2011, 11:29 PM Reply Like
  • pokalolo
    , contributor
    Comments (592) | Send Message
     
    Politicians don't create jobs. Real Estate taxes are coming down an millions of appeals will be filed in 2012 to reduce taxes.There is the gorilla ready to climb into the deficit ring. Local an States will continue to cut jobs an services !

     

    And,prices are still dropping an another 4.5% this year is possible. Cities that were not involved are seeing there time has come.
    http://yhoo.it/tXAV8z

     

    What will Obama do for the next 5 years ? I have my ideas,but,Hawaii is so high now were used to 2 dollars per sheet of toilet paper,but,mainlanders will continue to get hammered. Good luck.
    11 Dec 2011, 10:22 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3085) | Send Message
     
    Fannie Mae and Freddie Mac are being wound down because they failed. Those two government sponsored failures have already eaten Billions of the budget. The level of stupidity in this announcement is massive.
    11 Dec 2011, 01:35 PM Reply Like
  • cuda8
    , contributor
    Comment (1) | Send Message
     
    Interest alone is fee enough!! Increased refi,s would bolster the economy with lower monthly payments, without the high cost of fees.
    11 Dec 2011, 02:56 PM Reply Like
  • DVW
    , contributor
    Comments (157) | Send Message
     
    This whole payroll tax cut business is only putting Socialist Security more in trouble. Seems to me the logical thing to do is eliminate the wage cap for SSI. But, I guess that sounds too much like a tax hike on the rich. Personally, I'd rather SSI be eliminated, have them give me all the money back I've put in, and let me handle my own future.
    11 Dec 2011, 04:49 PM Reply Like
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