There is a theory about the naming of legislation. Some titles are straight out of George Orwell’s “double-speak” dictionary. In other words (literally), whatever word is in the title usually means exactly the opposite of what the bill will do. Remember the “Affordable Care Act” (ACA)? Despite the promises of President Obama and his administration that this milestone legislation would reduce the cost of healthcare for most Americans, the ACA is on track to explode those costs for all but the poorest Americans.
Geez, Louise: Let’s Squeeze the GSEs!
Joe and Teresa Giudice, aka one of the “Real Housewives of New Jersey,” are fresh off of a 39-count indictment for mail fraud, wire/bank/bankruptcy fraud and making false statements on mortgage loan applications. And when it comes to misleading mortgage-related information, their anthropomorphic equivalent may just be that government-sponsored (and now owned) enterprise (GSE) couple, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, aka Fannie Mae and Freddie Mac.
Risky Federal Home Loans: What Could Go Wrong?
On Tuesday, the Washington Post published a story on the Obama administration’s latest efforts to get banks to offer home loans to people with riskier credit.
Time to Get Real with Federal Property
The federal government has many addictions, including profligate spending, wasting money, and regulating the private lives of citizens. In such an environment, certain excesses are to be expected. But when they develop, it is important that they be quickly reined in. In the case of real property acquisition, the federal government’s addiction has gone on for far too long.
FHA – The Next Housing Bailout
On February 29, 2102, like a perverted state-run version of Charles Dickens’ novel Oliver Twist, officials at the bankrupt government-sponsored housing enterprise (GSE) Fannie Mae, after sustaining another $24 billion in losses during the previous quarter, trundled up to the federal trough once again, bleating “May I have some more.” The GSE needed $4.6 billion.
On Fannie, Freddie, and the FHA, Two Steps Back
Taxpayers are both in awe of and enraged by the schizophrenic behavior of government officials and lawmakers when it comes to taking action on the nation’s thorniest public policy conundrums. Over and over, taxpayers hear the rhetoric emanating from Washington urging opportune and commonsense action to solve a host of public policy issues and then watch, with horror, as the administration and members of Congress fail to turn that lofty rhetoric into forward-moving action; instead, they often make matters even worse. The evolution of reform efforts vis-a-vis the nation’s housing giants Fannie Mae and Freddie Mac and the Federal Housing Administration (FHA) is a perfect case study in that phenomenon.
Congress and GSE Reform: “Ready, Fire, Aim”?
Home sales are still abysmal and are expected to fall further. Foreclosures continue unabated, no end in sight. According to RealtyTrac, “there are 872,000 homes that have been repossessed by lenders, but have yet to be sold.” Sales of distressed homes, properties already owned by banks or in some stage of foreclosure, have slipped lower, and there is talk among the financial services experts of a double dip in the housing market.
Federal Real Property: Buried Alive!
When it comes to property management, the federal government is a bit of a pack rat. It likes to purchase and hoard a lot of real estate. Due to a combination of bad incentives and typical government bloat, selling real estate is a long, costly process. As a result, Uncle Sam owns more real property than any other entity in America: 900,000 buildings and structures covering 3.38 billion square feet. The Office of Management and Budget estimates that 55,000 properties are underutilized or entirely vacant, costing taxpayers $1.66 billion to maintain each year. That is probably too much stuff to cram into an hour-long “Hoarders” episode, but it should still be brought to the public’s attention.
Federal Housing Administration: The Next Big Fannie?
In the upcoming session of the 112th Congress, lawmakers will be faced with the daunting challenge of what to do with Fannie Mae and Freddie Mac, the nation’s two mortgage giants. These government-sponsored enterprises (GSEs) have been under conservatorship since September, 2008 and they have sponged up $150 billion in taxpayer bailout money to date. The CBO estimates that the bailout will cost $380 billion, more than three times the cost to taxpayers of the savings and loan crisis in the 1980s.
The Consumer Police and Sin Taxes
There have always been and will always be some people who believe they know what is best for everyone, so they try to force their will on the rest of society. This attitude is very much at odds withthe philosophy that liberty should be maximized and that people should be allowed to live their lives as they would like as long as they are not infringing on the rights of others.In recent years, the “we know best” crowd has expanded the number of activities that they believe need policing far beyond the traditional sins that have been targeted for decades and even centuries.