The economy is struggling. The labor market is ailing. The Real Estate market is reeling. And Congress (who collectively has done absolutely nothing) needs to take a holiday break. Seriously?
I could care less about party affiliation. Red or blue, left or right give me a break. Cut payroll taxes and extend benefits but not at the expense of housing. Seriously? You must be kidding.
If the National Association of Realtors is correct that selling homes creates jobs then why on earth would congress pass a bill making it more expensive to obtain a mortgage? According to the Associated Press as of January 1, 2012 the cost of a $200,000 house will increase $17 per month on average. Simply because the cost of keeping the payroll tax cuts and extending benefits will be paid for by charging lenders an additional fee to have Fannie Mae and Freddie Mac insure loans. I am sure to the members of congress this seems like a small price for future homeowners to pay. Small to them because they pay nothing for their medical coverage and they have government pensions. Unlike most citizens.
Here is a plan. Let’s pay for the costs with a direct reduction in the salaries of the members of the congress. An added cost to most consumers is nothing more than an additional tax which in fact is equivalent to a direct reduction in income. Seriously. These rocket scientists believe by making it more expensive for lenders to use Fannie and Freddie private money will enter the mortgage market. This plan must have been designed by the same person who thinks I should be required to wear a helmet while riding my bicycle but not my motorcycle.
Seriously? You must be kidding!