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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