Adverse Market Refinance Fee Delayed Until Dec. 1

2020-08-26 15:18
The Federal Housing Finance Agency (FHFA) today directed Fannie Mae and Freddie Mac to delay the implementation date of the Adverse Market Refinance Fee until Dec. 1, 2020. The fee was previously scheduled to begin Sept. 1, 2020.

Fannie Mae and Freddie Mac announced earlier this month that they would begin charging lenders a 0.5% “adverse market” fee on all refinances beginning Sept. 1. Now, the two mortgage giants will wait until December to implement the fee.

Additionally, the FHFA has directed Fannie and Freddie to limit which refinances will be subject to the fee. Loans with balances below $125,000 will be exempt, as nearly half of these are held by lower-income borrowers. The fee will also not apply to loans made through Fannie Mae’s HomeReady and Freddie Mac’s Home Possible affordable refinance programs, which are aimed at low-income and first-time homeowners.

Therefore, starting on 08/26/2020, CMAC Lending will not be applying Adverse Market Refinance Fee until further notice for all loans locked on or after 08/26/2020
TEMPORARILY SUSPENDED the Adverse Refi Fee on our ratesheet by reducing it to zero until further notice.

All loans must fund by Nov. 1st or be subject to the Adverse Refinance Fee upon extension. No exceptions.

If you have any questions, please contact your Account Executive. We continue to be here for you during this unprecedented time. Thank you for your continued business and support.