estate agent gives pen and documents agreement with customer to sign contract.
estate agent gives pen and documents agreement with customer to sign contract.

Adverse Market Refinance fee implementation delayed to Dec. 1

The Federal Housing Finance Agency announced Tuesday, Aug. 25, it is postponing the date it will begin implementing its adverse market refinance fee to Dec. 1. It was previously scheduled to take effect Sept. 1.

FHFA is also announcing that the enterprises will exempt refinance loans with loan balances below $125,000, nearly half of which are comprised of lower-income borrowers at or below 80% of area median income. Affordable refinance products Home Ready and Home Possible, are also exempt.

After Fannie Mae and Freddie Mac announced an added 50 basis point fee to all refinances, the housing industry responded negatively.

The Mortgage Bankers Association was one of the strongest voices in opposition to the new fee, saying, in part, “The additional 0.5% fee on Fannie Mae and Freddie Mac refinance mortgages will raise costs for families trying to make ends meet in these challenging times. In addition, the Sept. 1 effective date means that thousands of borrowers who did not lock in their rates could face unanticipated cost increases just days from closing.”

The LSCU and CUNA were active in supporting the implementation delay, which protects borrowers who already are suffering adverse financial effects during the pandemic.

Written by
Cara Clark
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About Us

The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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To create an environment that enables credit unions to grow and succeed.

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To be the trusted advocate and preferred source of information for credit unions.

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