His mandate, that a small portion of revenues at Freddie Mac and Fannie Mae be earmarked for these initiatives, has Republican lawmakers livid. However, their arguments centering around some future cataclysmic financial crises necessitating the status quo, a restructure or replacement of the GSE’s is being undermined by their profitability. Fannie and Freddie stand to earn combined profits of $25b in 2014. Remember, only those who have taken out a mortgage since 2008 have repaid the U.S. Treasury for the $188b bail out. It was paid for with increased fees charged to borrowers. This funding of the affordable housing initiatives will be paid for with these increased fees which will be collected from current and future borrowers.
Home owner taxpayers are paying more for their mortgages in order to fund social programs that they are, for the most part, unaware of.
Dodd-Frank limits what I can charge you for your mortgage and mandates my full disclosure to you, of all charges you are paying. I am subject to dire financial consequences if I, or my staff, do not fully comply with these disclosure regulations.
Why is Congress not required to fully disclose it's actions to it's taxpayers?
Did you know that, in addition to the taxes you are paying, several extra dollars are being added to your mortgage closing costs in order to fund public and low income housing grants? Did you?
I believe that maintaining Fannie Mae and Freddie Mac is probably worth using them as a conduit for the distribution, to low income tenants, of these extra charges to home buying taxpayers. It would just be nice for our lawmakers to have to play by the same “transparency” rules that we in the mortgage industry have been mandated by them to follow.
No comments:
Post a Comment