Saw this commentary on Facebook…
It seems that Congress is once again tempted to come back to the “mortgage well” since the House passed HR 1629, the STEM Jobs Act of 2012. The bill amends the Immigration and Nationality Act to make up to 55,000 visas available to qualified immigrants with certain advanced degrees who agree to work for at least five years for the petitioning employer or in the United States in a STEM field. STEM is a designation indicating advanced training in science, technology, engineering or math. (Not mortgage banking or real estate.)
When it was sent to the House Rules Committee the bill was altered with what is generally known as a “payfor” which would require Fannie Mae and Freddie Mac to increase their guarantee fees to cover the cost of implementing the STEM Jobs Act. Guarantee fees were implemented a few years ago to pay for the “Government Assistance” they received during the difficult years. With the Federal Reserve buying Mortgage Bonds to keep rates low, doesn’t this seem counterproductive to increase the “Guarantee Fee” which is ultimately paid for by the Borrower’s.
The Mortgage Banker’s Association President, Dave Stevens urged Congress to reconsider their approach of using guarantee fees for this purpose. He said in part, “Fannie and Freddie’s guarantee fees are supposed to be used to help offset the risk inherent in providing mortgages, and any increases to those fees should be used for that purpose. Dipping back into the housing piggybank to pay for unrelated policy items on the backs of America’s homebuyers sends the wrong message at a time when the housing market is starting to show signs of recovery.”
