The Mortgage Bankers Association (MBA) is siding with the House GOP leadership in opposing the Senate-passed bill to extend the payroll tax holiday for two months.
David H. Stevens, president and CEO of the MBA, argues that the trade group opposes the bill because it adds an additional tax on most homebuyers for the next 10 years.
‘The idea that you should pass a 10-year tax increase for two months of payroll tax relief is appalling,’ says Stevens. ‘Fannie and Freddie's guarantee fees are supposed to be used to help offset the risk inherent in providing mortgages, and any increases should be used for that purpose. Siphoning off a portion of those fees into the general government coffers may be politically expedient, but it is far from sound policy."
Stevens recommends that congressional leaders work together for a different way to cover the costs of the payroll tax proposal.Â
‘Policymakers need to go back to the drawing board and come up with a thoughtful, comprehensive approach to paying for the payroll tax holiday – one that doesn't increase taxes by thousands of dollars on homebuyers, at a time when the housing market is already struggling,’ he says.