Posts Tagged ‘payroll tax cut’

An ironic twist to Team O’s plan for refinancing underwater mortgages …

February 7, 2012

Last week, the Campaigner-in-Chief stumped for a program to allow folks with underwater mortgages to refinance at current market interest rates.

According to Obama:

There are more than 10 million homeowners across the country who, because of an unprecedented decline in home prices, owe more on their mortgage than their homes are worth.

For those responsible homeowners, there are actions we can take now to provide some relief.

That’s why I’m sending Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at today’s low rates.

No more red tape or runaround from the banks.

A small fee on the largest financial institutions will ensure that it won’t add to the deficit and will give those banks that were rescued by taxpayers a chance to repay a deficit of trust.

I’m basically ok with the idea, but there’s some irony: Remember when the payroll tax cut was extended (for 2 months)  last December?

Well, it was also pitched as deficit neutral.

How was it going to be paid for?

Well, the 2-month payroll tax holiday is being offset (over 10 years) by an increase in mortgage fees,

Every new or refinancing loan going through Fannie Mae or Freddie Mac – that’s over 90% of all mortgages – get tagged with an added fee (20 basis points, .2 %)

According to NPR, the added fee works out to about $17 per month for an average mortgage of about $200,000.

So, let me get this straight: Team O is going to force lenders to cut the rate on underwater mortgages — most of which will go thru Fannie and Freddie — and then hit the folks who are refinancing with a an added fee for cover the cost of payroll tax cuts.

This stuff gets wackier by the minute  …

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GOP set to hand O an early Xmas present …

December 15, 2011

Let’s set the stage: The President is caught between a rock (his unions) and a hard place (his enviromentalist supporters).

So, he punts the XL pipeline decision until after the 2012 election … telling both sides not to worry that he’ll take their side when nut-cutting time comes.

Everybody with an IQ over 50 sees the move as pure politics, but Obama’s boxed.

To the rescue: the GOP … by demanding that XL be part of the payroll tax cut extension legislation.

Of course, Obama plays the Brer Rabbit card and threatens a veto.

So, the GOP hardens its position … XL has got to be part of the package.

It will be.

Why?

Because O gets off the hook.

Even he knows the pipeline is a good idea – jobs, energy independence, etc.

He’d like to sign it, but can’t because of the pressure from the environmentalists.

He can’t, unless he’s painted into a corner, say, by the GOP demanding it to pass the payroll tax cut.

So, the bill will pass with XL in it, the President will sign it, and he’ll tell the environmentalists that he had no choice.

You heard it here in the HomaFiles …

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