It is nice to end the week with good news, so here it is: The Federal
Housing Finance Agency (FHFA) just announced it is
eliminating the Adverse Market Refinance Fee that the GSEs Fannie Mae and Freddie
Mac have been charging. The change becomes effective for loan deliveries on and
after August 1, 2021. The 50-basis point fee was designed to cover losses
projected as a result of the COVID-19 pandemic. However, the agency says the
success of policies it and the GSEs put into effect in response to the crisis were
effective enough to warrant an early conclusion of the Fee. FHFA’s expectation
is that those lenders who were charging borrowers the fee will pass cost savings
back to them.

 

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