Congress to Mortgage Borrowers: Merry Christmas and Drop Dead

What would Congress do if it didn’t have housing (and mortgage banking) to kick around? Who knows, really. Passing the payroll tax break extension was a good idea. It puts extra money in the pockets of potential mortgage customers who might use the cash to finance a home. Oh, but wait. The new payroll tax break extension is being funded through a 10 basis point hike in guarantee fees charged to seller/services by Fannie Mae and Freddie Mac. Do the lug heads in Congress really think the mortgage industry is going to eat this cost? If they do, maybe Santa will come sliding down their chimneys in two days. As we all know higher g-fees will be passed onto mortgage applicants. The publicly traded Wells Fargo sure as heck isn’t going to eat the cost. But it is the holiday season. Maybe Congress will come to its senses and find another way to fund the payroll tax break. The extension is for two months only. Hope springs eternal. March 1 is right around the corner…

| Comments

Boy, I cannot wait come election time!

Posted by brad belcher on December 23, 2011 at 12:07 PM EDT #

Kick them all out!!

Posted by Gary Ardesson on December 23, 2011 at 12:12 PM EDT #

Not saying your view is right or wrong but…don’t tax you, don’t tax me, tax the guy behind the tree.

Posted by GARY A on December 23, 2011 at 12:20 PM EDT #

What a bunch of self-serving idiots!!! Watching this last congressional impasse was like watching 2 drunks argue over a bar bill on the Titanic.

Posted by Ken Truitt on December 23, 2011 at 12:20 PM EDT #

Well they said the fee was for only 10 years, so that seems fair LOL

Posted by Steve Wolvers on December 23, 2011 at 12:29 PM EDT #

It was 1,221 pages long. How many members of the House read this before voting either way? The mortgage tax was just one aspect that we know about because it affets us directly and we heard about it ahead of time. What was on the other 1,220 pages? There is no end to this.

Posted by Denny Heatherly on December 23, 2011 at 12:31 PM EDT #

I’m beginning to think the term “Ho Ho Ho” should be taken in a more Rap connotation when it applies to Congress and this administration. They all seem far to eager to whore around. As reported here, when the proposal was made to increase Fannie Freddie fees, the MI companies called their guys on K-Street to lobby hard to raise HUD loan fees as well. Great folks those. Always looking out for us on the origination side. And maybe Santa will leave me 100 new, qualified prospects in my stocking.

Posted by Doug Huggins on December 23, 2011 at 12:41 PM EDT #

It is just a follow the deader Congress and the leader is totally self serving. The philosophy is “its my way or the highway.” Screw the voting public!

Posted by Elliott on December 23, 2011 at 12:45 PM EDT #

You know where all this BS comes from right? -See Eric Cantor and tea party ftards in congress.1% capitalism without representation. I say dump the tea baggers overboard.

Posted by Melanie Moore on December 23, 2011 at 12:49 PM EDT #

Melanie. You really in the dark on tea-party activists. They want less government and the reduced spending that goes with it, or we’ll end up like the PIGS in Europe. This little tug-o-war is only headline news because it makes the Demos look like middleclass crusaders cutting taxes.

Posted by William Ray on December 23, 2011 at 01:05 PM EDT #

I think we should all get the same deal those wonderful folks in Washington get. Free medical for life, The right to pass laws that benifit our selves, The right to raise our wages, and the best is we get to snow job the people who pay us. This is getting way out of hand!

Posted by John on December 23, 2011 at 01:33 PM EDT #

I think we should all get the same deal those wonderful folks in Washington get. Free medical for life, The right to pass laws that benifit our selves, The right to raise our wages, and the best is we get to snow job the people who pay us. This is getting way out of hand!

Posted by John on December 23, 2011 at 01:33 PM EDT #

These are Worst than ALL Sub-primes put together…..This is unbelievableI dare anyone to view Re-hypothecation and say it is okThis will take the World and the British Down Video:
http://www.realecontv.com/page/6262.html
Click Above

Posted by James Armstrong on December 23, 2011 at 01:40 PM EDT #

I’m fed up with all the bull from congress. Self-serving idiots. They could care less what happens to anyone. We’re all here in this nation to pay our taxes so the people in washington can live high and mighty.

Posted by Belinda on December 23, 2011 at 02:31 PM EDT #

Once again Congress acts without understanding any of the ramifications of their edicts. I am way beyond identifying whether its Democrat or Republican, left, right, or center. Congress as a whole is an extremely dysfunctional institution whose members spend most of their time posturing for reelection…

Posted by Ilan on December 23, 2011 at 02:56 PM EDT #

WOW – Every American should see thisThis will take the World and the British Down Video: http://www.realecontv.com/page/6262.html Click Above

Posted by Joseph Solomon on December 23, 2011 at 03:05 PM EDT #

NET RESULT – A 10 bps gaurantee fee will turn into a 50 – 100 bps increase in margins for loan funding companies (banks Mtg Bankers Brokers). The reson being 50 bps = 5 years or G-Fees, 100 bps = a little extra just in case. Now that originators are locked in, business will be booming and the banks are in control now. Look forward to an end of low mortgage margins. Without oversight banks would go back to 600-800 bps per loan in margin and paying sales people salaries.

Posted by DL on December 23, 2011 at 03:09 PM EDT #

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Article source: http://www.nationalmortgagenews.com/blogs/hearing/congress-mortgage-borrowers-drop-dead-1028005-1.html

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