ANNOUNCEMENT

CONVENTIONAL LLPA CHANGES

Date
2020-08-13 14:45
CONVENTIONAL LLPA CHANGES

On August 12, 2020, Fannie Mae and Freddie Mac, the GSEs, announced a new Adverse Market Refinance Fee of 50 basis points (0.500%). This fee will apply to no cash-out and cash-out refinances. The new fee is in addition to any other price adjustments that are otherwise applicable to specific loan transactions.

The LLPA changes will be effective for new commitments, relocks, and renegotiations.

Effective immediately, any lock extensions on GSE no cash-out and cash-out refinance transactions will be subject to the new Adverse Market Refinance Fee.

Resources:

Fannie Mae Lender Letter LL-2020-12

https://singlefamily.fanniemae.com/media/23726/display

Freddie Mac Bulletin 2020-32

https://guide.freddiemac.com/app/guide/bulletin/2020-32
Please contact your CMAC Lending sales representative or [email protected] with any questions.