“The House and Senate wrapped up work last week on a long-term transportation funding bill, sending the legislation to President Obama's desk for his expected signature,” the Mortgage Bankers Association said in a release. “In a key victory for MBA, the final package did not contain a provision to pay for a portion of the new transportation spending through an extended increase in the fees charged by Fannie Mae and Freddie Mac to guarantee a loan.”
The MBA’s Mortgage Action Alliance lobbied for months in a bid to sway congress not to use buyers as a means to contribute to the unrelated transportation funding.
Last Tuesday, the House and Senate agreed to a five-year transportation reauthorization bill, H.R. 22, the Fixing America’s Surface Transportation Act.
An earlier Senate version of the bill included the stipulation that part of the higher fees would come from Fannie Mae and Freddie Mac. However, the bill will instead be funded through a one-time draw of Federal Reserve surplus funds and changes to bank-issued dividends.
“With respect to Federal Reserve dividends, banks with less than $10 billion in assets will continue to receive the current 6 percent dividend rate, while other banks will receive the lesser of the 10-year Treasury yield or 6 percent,” the MBA said.
Clients will not have to deal with price hikes for Fannie and Freddie-backed loans, following the advocacy of one industry association that went to bat for home buyers.