FHFA Scraps Homeowners’ Fee for Refinancing
In 2020, FHFA made homeowners pay an extra fee if they refinance, but that fee will go away after Aug. 1 – part of a new focus to help owners keep their property.
WASHINGTON – Federal Housing Finance Agency (FHFA) Acting Director Sandra Thompson announced on July 16 that Fannie Mae and Freddie Mac will no longer assess a 50 basis point fee on lenders when they deliver refinanced mortgages after Aug. 1.
The agency’s scrapping of the adverse market fee is Thompson’s first rescission of a Trump-era policy since she took charge of FHFA last month.
Ex-FHFA Director Mark Calabria required the mortgage lending giants to impose the temporary fee in September 2020, stating it was a way to recoup projected losses from COVID-19.
“The COVID-19 pandemic financially exacerbated America’s affordable housing crisis,” Thompson said. “Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money. Today’s action furthers FHFA’s priority of supporting affordable housing while simultaneously protecting the safety and soundness of the enterprises.”
Thompson is expected to roll back several policies led by Calabria, who wanted to curb risk in Fannie and Freddie’s portfolios and shrink their market presence.
Source: Politico Pro (07/16/21) O’Donnell, Katy
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