Consumers soon will be paying more for government-backed mortgages now that the House and Senate have reached a deal to extend a payroll tax break for two months.The bill (H.R. 3630) pays for the payroll measure by hiking guarantee fees on Fannie Mae and Freddie Mac loans by 10 basis points. Lenders will pay the extra points but, more than likely, will past the cost onto borrowers.
After a bitter fight over the two-month extension, congressional leaders reached a deal late Thursday. They will return to Washington in January to hammer out a full-year extension. Mortgage industry leaders are hoping lawmakers will look elsewhere for revenues to fund the next extension.