By Phil Riske, managing editor, Rose Law Group Reporter
Agreement has been reached by key senators on a bill to extend transportation programs for six years, but the Senate on Wednesday failed to begin voting on it amid Democrat complaints they have not been allowed time to read the bill.
The holdup centers around an amendment buried on page 948 of the 1,034-page bill that, if the bill passes, would effectively amend a previous change that increased the guarantee fees charged by Fannie Mae and Freddie Mac to guarantee a mortgage loan.
That change, made in 2011, was as a “pay-for” for a non-housing government project.
The proposed change extends by four years that earlier 10 basis point increase, making this at least the fourth occasion on which Congress has looked to homebuyers as a resource to fund non-housing related programs, reports Mortgage News Daily (MND).
Pay-fors are necessary, officials say, because the bill as proposed extends the federal highway funding as well as funding for airports and other transportation programs for six years but provides only $47 billion in actual money, enough for three years.
MND says Banking Committee Chairman Richard Shelby (R-AL) has said he will hold the Senate in session even through the weekend to bring the bill to a vote. Current authorization for transportation programs ends on July 31 and several states are already on the verge of running out of money.
