FHFA Targets 5 States for Rate Hike
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May 31, 2013
June 5-6, 2013
I asked our head of Secondary why our state, which is not one of the five states you mentioned his also being hit with the additional Guaranty Fees:
His reponse is copied and pasted below:
The new FHFA Gfees effected all states. Those states you mentioned below have additional hits on top of the blanket gfees
Is he correct?
The state I originate business is not one of the five states you mentioned. But we too are being charged this additional fee. I asked my head of secondary why? Below is his copied and pasted reponse:
The new FHFA Gfees effected all states. Those states you mentioned below have additional hits on top of the blanket gfees.
Is he correct?
We are supposed to be more concerned how Mitt spends his own $ than how Obama spends the taxpayer$???
Over the next 10 years, ObamaCare will reduce Medicare spending by $716 billion.What does this mean for seniors? The average amount spent on Medicare enrollees over the remainder of their lives will decrease by:
$36,000 for someone who turned 65 in the year 2010.
$62,000 for someone who will turn 65 in the year 2020.
$105,000 for someone who will turn 65 in the year 2030.
Home Sale Tax begins 2013
When does your home become part of your health care? After 2012!
Your vote counts big time in 2012, make sure you and all your friends and family know about this!
HOME SALES TAX
The National Association of Realtors is all over this and working to get it repealed, — before it takes effect. But, I am very pleased we aren’t the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many realtors do you think will vote Democratic in 2012?
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That’s $3,800 on a $100,000 home, etc. When did this happen? It’s in the health care bill, — and it goes into effect in 2013. Why 2013? Could it be so that it doesn’t come to light until after the 2012 elections? So, this is ‘change you can believe in’?
Under the new health care bill all real estate transactions will be subject to a 3.8% sales tax.
If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, — who often downsize their homes. Does this make your November, 2012 vote more important?
Oh, you weren’t aware that this was in the ObamaCare bill? Guess what; you aren’t alone! There are more than a few members of Congress that weren’t aware of it either.
You can check this out for yourself at:
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
Copy, paste & share with YOUR friends!
Look at the regulation again. It only affects select borrowers over $250,000 in capital gains. Although I agree that the health care bill contains other legislation not affecting health care at all. I guess we need to read it, now that it has been passed. I wonder if Nancy Pelosi has looked at the cover, let alone read any of it?
When you can print money, would you give a %$#%^$?
Edward DeMarco the “interim” head of FHFA is a very, very bad leader.
He should have been fired ages ago.
He is the housing equivalent of Michael”Brownie, you’re doing a heck of a job” Brown, the former head of FEMA under Dubbya.
Hurricane Katrina part deux.
What is the “credit costs” that Fannie lost 26 Billion to? Just wondering what fees were lump summed into that title.
Thanks
Wells Fargo gets sued straight out of wholesale because of charging higher fees in certain areas and states under the guise of discrimination. Hmm.. interesting how disgustingly hypocritical the government is.
How is charging these states higher fees different?
The FHFA has instituted two increases in g-fees this year. Neither has anything to do with GFE health or costs related to foreclosures. The first one was to offset the cost to the Treasury of the 2% drop in payroll taxes. That increase went to the Treasury, NOT to Fannie or Freddie.
The purpose of the latest increase was : “These changes will move Fannie Mae and Freddie Mac pricing closer to the level one might expect to see if mortgage credit risk was borne solely by private capital,” said Edward J. DeMarco, Acting Director of FHFA.
Again, this money goes straight to the Treasury. It does NOT apply to Fannie and Freddie’s foreclosure costs. The Treasury just found a new piggy bank.
All the rhetoric is solely political and there is nothing about it is based upon economic principles.
Don’t forget about the 10 BPs hit to the GF we are paying for the BP Oil spill. Nice how they are named for each other!!!
the recent 10+ basis point G-fee increase translated to a 50bps – 75bps increase on rate sheet pricing. The 10bps a one-time charge for a new loan and goes to Fannie / Freddie. Where does the difference go?
Or, is the 10bps to Fannie Freddie paid over the length of the loan as rate and thererfore pricing needs to be 50bps higher to create the increase in rate?
Well said!
My estimate of likely action by Illinois politicians is zip! They cannot grasp any positive action to solve a problem beyond how it will extend their power in office or how it will enhance their own bank account. Just look to how well the recent Governors of our great state led us to prosperity… and don’t forget the reigning Speaker of the IL Assembly… he’s been in the Assembly since the early 70′s. That’s what happens when dead people continue to cast ballots.
Thanks for a great show. As a licensed mortgage broker in NY, NJ, CT and FL I find the proposed hike repulsive. My guess is that these state governments will do something to stop it. If they don’t, what on earth are they going to tell their constituents? Lenders in these states are already up in arms about the horrendous foreclosure delays – and now we’re going to have millions of home buyers and borrowers complaining too? It’s just too unpopular. I say politicians and elected officials aren’t going to let this happen.
They will do nothing.
Do you remember your questions on the NMLS Exam? When was the FHFA started? What is its purpose?
Your basic math is good, but the ability to own a home in this country is easier and better than any other place on the planet. Like my Dad used to say, Our system has problems, but its the best one going.
You guys are better than nothing though.
Here in the great state of Illinois we will be bending over like we always do!
Great move! it’s about time that fees are directed towards the cost centers. Too bad FHA eliminated their risk based MIP a few years ago. It was only in existence for a few months but Barney Frank and his cronies claimed discrimination. Ya, discrimination towards the credit criminals that shouldn’t be buying houses.
Hear, hear!
Here is what the states getting the GFee increase need to do is file a class action law suite and claim discrimination as the GFee is clearly aimed at minorities. Just ask Wells Fargo about the big payout they did and the other big bank in Cali.
Ha! Awesome….
just out of curiosity did the great executives at Fannie Mae and Freddie Mac and the FHFA for that matter get bonuses in 2010 and 2011? I mean hey look at how little they lost??? Its kind of like saying the good news is unemployment didnt worsen as much as expected and New houseing starts are up ( but still way below what a healthy market should be at) Almost forgot more people at the poverty level and the median income has dropped but lets reelect the current administration so we can keep this up for FOUR MORE YEARS!
And costs have not already sky rocketed due to Fed printing money? Bought any gas or groceries lately? Food costs have gone crazy and housing prices cannot be far behind. I wouldn’t blame president/candidate O personally for the printing of money to make the economy look better, but his administration is in charge.
States – take action? You gotta be kidding! While some home owners were being foreclosed on in error others are able to stay in their homes (or investment condos) over 2 years. Combine Florida’s law which tries to protect the homeowner and inept processing on the part of the mortgage holders.
I don’t think the right people are \getting it.\ Low mortgage interest rates are great but they’re useless if the costs of buying the house is out of reach. Not including the down payment, closing costs can be another 3% or more when you are through with all of the fees associated with lending/mortgage fees, title, prepaids, and reserves. It feels like mortgage fees go up each time the mortgage interest rate goes down. Remember the law of diminishing returns. The more expensive it gets to buy a home, the fewer will buy homes. We should all understand what that means.
This is a great reason the Gov should stay out of our business.
Pres or Candidate O wants to help out homeowners and stalls the inevitable foreclosure. Good for a vote or 2. Then His “self appointed” agency needs more money to insure losses due to the waisted length of time to complete an inevitable foreclosure.
President, Candidate O and his “self appointed” staff are self destructing the housing agency not by incompetence but by design.
After Nov 6 if things don’t change those so called shadow inventories will raise their phantom heads and we will end up with one hell of a 2013 year and beyond.
Recovery will be a missed Hope and a distant Dream.
And if candidate “R” gets in everything will be about profit for the banks. Cost to consumers will skyrocket while the too big to fail banks rake it in. Fannie and Freddie will eventually sell off the shadow inventory and the market will rebound. This is likely to take several more years. Steps needed: 1.) We need to get undeserving buyers out of those properties and back into rentals where they belonged in the first place. 2.) Restore the beat up housing stock for rental or sale. 3.) Boost employment (not $8.00/per hour jobs at companies like Staples) Lots of work ahead that will take time.
Where do you think things have been with the current administration? CFPB, Dodd-Frank, and the ACA have clobbered the employment sectors so hard that very few are hiring. Until the chains of government are removed from the ankles of businesses (over-reaching regulation, taxation, EPA, and the other string of barriers on starting a new business), there will be NO substaintial growth in the labor force (is that the ultimate goal – cripple corporate growth, increase reliance on the government, and ultimately burn down the Republic?). Why is it OK for the government to give priority to the UAW and not secured stock holders at GM? Why is it OK to sue banks for not making loans to lower income borrowers? Do you think an attorney who threatened suit on banks who were not lending to lower income borrowers has ANY incentive to “get undeserving buyers out of those properties and back into rentals where they belonged in the first place”? Do you think employers will be expanding and hiring at higher income positions with all of the uncertainty coming out of the current administration? How many managers are you hiring right now, Dan? Why do you expect anything but a repeat of the last 4 years from the current administration? Why are you not a champion of small businesses and entrepreneurs? I don’t foresee any positive changes in real employment coming from the current administration. I’d rather take my chances with a new leader than get more of the same from our current leader. There is lots of work ahead, but I have far more trust in the new guy to truly champion the values on which this Republic was founded. I prefer the direction of Benjamin Franklin, not Frank Marshall Davis. I’ll take a Restoration of America istead of Forward.
In case you haven’t noticed, the banks have been raking it in under the current administration.
Look at their quarterly profits and look at where the mortgage securities are selling vs. where the rates are. The banks are making huge spreads right now and will continue to do so until the Fed stops buying mortgage backs.
Don’t get me wrong, I love these low rates, but based on the 2% & 3% coupons the 30 year rate should be about 2.5% at par. The banksters are not passing it on, they’re keeping more and more of the spread.
This administration is pandering to the banks while giving the impression of fighting them. Look behind the curtain and understand what is really going on before you stereotype one candidate or another.