7.16.21
On July 16, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will eliminate the controversial 50-basis point adverse refinance fee as of August 1 to help families reduce their housing costs. The fee, which was imposed on December 1, 2020, added a 0.5% charge to lenders when they delivered refinanced mortgages. The move comes after the housing market has superseded economic expectations amid the pandemic with soaring home sales and a sharp decrease in unemployment. Additionally, with the conclusion that the vast majority of Fannie and Freddie borrowers have exited forbearance. The FHFA expects that lenders who were charging borrowers the fee will pass cost savings back to borrowers.