FHFA moves to lower consumer cost of refinancing

Photo by NeONBRAND on Unsplash

RISMedia | Liz Dominguez

The Federal Housing Finance Agency (FHFA) just gave homeowners and lenders a savings opportunity by eliminating the Adverse Market Refinance Fee. Effective Aug. 1, lenders will no longer have to pay Fannie Mae and Freddie Mac a 50-basis point fee for refinance mortgages.

FHFA enacted the fee in December 2020 to “cover projected COVID-19 losses.” According to the agency, the early chop can be attributed to enacted policies that lessened the impact of COVID on consumers and the markets.

“The COVID-19 pandemic financially exacerbated America’s affordable housing crisis. Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money,” said Acting Director Sandra L. Thompson. “Today’s action furthers FHFA’s priority of supporting affordable housing while simultaneously protecting the safety and soundness of the enterprises.”

Read the story online here: Will Removal of FHFA Adverse Market Refi Fee Lead to Consumer Savings?