New mortgage fees:
The $33 billion cost of the two-month extension would be covered by increasing fees government-controlled Fannie Mae and Freddie Mac charge lenders to guarantee mortgages. A full-year extension would have cost about $200 billion.
The fees on new mortgage customers would be permanently increased by 10 basis points under the legislation.
http://news.yahoo.com/lawmakers-agree-2-month-payroll-tax-cut-extension-003819166.html
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The bad news extends further to new or refinancing homeowners as they will foot the bill for the tax cut. New fees attached to mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration will cover the cost.
Fox News reported ” the mortgage fee provision would have widespread long-term impact, considering nine out of 10 mortgages go through one of the three government-sponsored finance organizations affected. The new fee increase would amount to about $15 a month more for a $200,000 mortgage, according to a senior Democratic official. That’s $180 a year, or $360 a year for a $400,000 mortgage.
Homeowners would have the fee hike built into their loan — the mortgage provider would then send that extra revenue to the Treasury.
http://conservativedailynews.com/2011/12/senate-passes-spending-bill-obama-signs/
So ... can King Obama implement this by decree?
Payroll tax cut to cost homebuyers $5,000
Orange County Register ^ | December 17th, 2011 | Mary Ann Milbourn
Posted on Thursday, December 22, 2011 3:38:06 PM by hiho hiho
Most homebuyers will pay an increased fee to finance their mortgage as part of a U.S. Senate compromise approved today to continue a 2 percentage point cut in payroll taxes and extend unemployment benefits until February.
In a last-minute compromise reached Friday night, the Senate agreed to extend the payroll tax cut and unemployment benefits but only for two months and to pay the estimated $30 billion to $40 billion cost by increasing the fees on new mortgages backed by Fannie Mae and Freddie Mac.
The increase is expected to cost a new homebuyer about $17 a month for a $200,000 mortgage and would tack on an estimated $5,000 to the cost over the life of the loan, according to the Associated Press.
http://www.freerepublic.com/focus/f-news/2823949/posts