Mortgage Banking: Legislating G Fees, What's Next?

Last winter, Congress quietly raided the GSEs' cookie jar to pay for an extension of a payroll-tax holiday. It could prove the start of a much bigger development.

Although the statutory guidance provided by Congress was intended to fund a payroll tax extension, the legislation in question may move the industry closer to establishing a market-clearing price for the credit risk of mortgages. Law of unintended consequences, you say-sounds about right.

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