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Is there any money that is out of the new Congress’s reach? Fannie Mae and Freddie Mac, the two quasi public private mortgage funding companies are facing the long arm of Congress reaching into their pockets to the tune of 500 million dollars a year to fund new housing initiatives.

The hypocricy is that these politicians is that they are claiming it is not a tax. But they are lying like only a politician can. It is not a tax on the general public but on the shareholders of 1 company. If the government takes money from anyone in the general public, being either a company or a person, it is a tax.

Frank said the funds will go to communities without increasing government spending or the deficit. He was joined at a press conference Thursday afternoon by several community groups and lawmakers including Reps. John McHugh, R-N.Y., and Maxine Waters, D-Calif., who are among the bill’s co-sponsors.
The House approved diverting some $500 million to $600 million of profits from Fannie and Freddie to an affordable housing fund in May, when it cleared an overhaul of rules on the two government-sponsored enterprises. The bill introduced Thursday includes those funds.
Some Republicans objected to taking money from Fannie and Freddie, saying it would amount to a tax on home loans financed by the companies.
While there hasn’t been action on the fund in the Senate, Frank said Thursday he is “optimistic” that there will be soon. He said he has spoken with Sens. Charles Schumer, D-N.Y., and Jack Reed, a Rhode Island Democrat, about the proposal.
The bill would put between $800 million and $1 billion a year into the fund, for 10 years. Sixty percent of the funds would go directly to local communities while the remainder would go to states, Indian tribes and other recipients. via CNN Money

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