It was big, bad news when it came out last summer. Almost a year later, the 50 basis point “adverse market fee,” which affected a majority of refinance mortgages has been eliminated! Backstory In early August 2020, Fannie and Freddie (who collectively buy or guarantee a vast majority of all mortgages) announced that virtually all conventional refinance loans would be subject to a new fee of 0.50 points (e.g. an extra $ 1500 upfront on a $ 300k loan, or a 0.125-0.25% increase in rate). After much protest, the implementation of the fee was delayed at the end of August. Lenders ultimately began adding it back into rate sheets en masse by mid September. All of the above can be seen in the following chart which shows the effects on average daily rates. Fast forward to the summer of 2021 and some recent
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