Congress is expected to pass a bill early next week that will extend existing payroll tax cuts and long term unemployment benefits by two months.
The extension will cost the government roughly $33 billion in lost revenue. To make up for the lost monies, Congress decided to increase the fees on loans funded by government owned institutions Fannie Mae and Freddie Mac. Borrowers purchasing or refinancing after January 1st will pay approximately $17 more a month in fees.
President Obama hopes the fees will level the playing field for other lenders in the housing finance industry and curb Fannie Mae's and Freddie Mac's dominance in the mortgage market, according to USA Today.