Dennis' Mortgage Blog

The Wall Street Journal is reporting that to pay for the proposed payroll tax cut that reduces contributions to the already bereft Social Security fund they are proposing Fannie Mae and Freddie Mac charge lenders for funded loans.  As before when Fannie and Freddie fees were raised the fees will be passed along to borrowers.

The payroll tax cut is a bad idea on its own, taking $100 billion out of a social security fund that is already unsustainable to provide for future retirees.  Paying for the tax cut by making it more expensive to purchase or refinance homes when the housing markets across the country are still in trouble makes no sense whatsoever.

Primary to the full recovery of our economy will be recovery of the nation's housing markets.  Making it more difficult for the housing recovery to begin and to sustain itself jeopordizes and/or delays that recovery.

Here is a link to the Wall Street Journal article:

Mortgage Fees Eyed to Offset Payroll Tax Reduction