I understand your point and I imagine that the author does too. But his point is that taking money from taxpayers and giving it to others is wealth redistribution. Pure and simple.
But his bigger point is that the government is so chaotic that it can’t ever deliver sensible policies anymore. Or maybe they never could.
Mortgage instruments contain a vehicle for payment of principal (the lender doesn't want to lose money) and a vehicle for payment of interest (the lender wants to profit). In this case, the lender is Uncle Sam. Well, Uncle Sam has sold off the vehicle for payment of principal. Uncle Sam isn't going to lose money, and the principal payments of the homeowners do not have an impact on Uncle Sam.
The problem is that Uncle Sam retained control of the vehicle for collecting interest payments. Uncle Sam is charging homeowners 7% interest on their mortgage. Uncle Sam likes this. That's big money for Uncle Sam. The homeowners can refinance their mortgage (to below 4%) but only if Uncle Sam says it's OK. But Uncle Sam isn't allowing that -- because Uncle Sam likes to profit from the 7% interest rate.
In the private sector, this would not happen, but the government can do this. The government is screwing Middle Class homeowners with FHA loans, pure and simple.