FHFA Delaying GSE fee until Dec 1

Posted: Aug 26 2020

The Federal Housing Finance Agency yesterday delayed a 50-basis point fee it had planned to start imposing on Fannie Mae and Freddie Mac refinanced mortgages. Instead of taking effect Sept. 1, the fee will be imposed Dec. 1, and it will exempt refinance loans with balances of less than $125,000 to preserve refi accessibility for low-income borrowers.

A broad financial coalition, the state bankers associations including NDBA, and consumer organizations expressed concern over the fee, citing the cost of $1,400 it would add to a typical refinance at a time when many consumers are attempting to reduce household expenses, and warned that its Sept. 1 effective date would raise costs for loans already in the application pipeline.

To read more, visit: https://www.fhfa.gov//Media/PublicAffairs/Pages/Adverse-Market-Refinance-Fee-Implementation-Now-December-1.aspx