In order to pay for the payroll tax cut, as of April 1, Fannie Mae and Freddie Mac will be raising the fee they charge lenders for guaranteeing mortgages, charging an additional 0.1 percent of the loan amount on top of the current charge. That's expected to drive up interest rates about one-eighth of a percent as those costs are passed along to borrowers. More here
Having discovered this nearly invisible source of funding for their favorite projects, a group of senators have proposed extending the “tax” on Fannie/Freddie guaranties to pay for some of the costs of the BP Oil Spill Clean-up. More from Housing Wire.