The FHFA directed Fannie Mae and Freddie Mac to delay the implementation date of their .05% Adverse Market Refinance Fee from Sept. 1 until Dec. 1, but C.A.R. says the damage has been done.
“While delaying the implementation of this fee may be helpful to lenders, it does nothing to mitigate the damage and cost it will have on consumers because lenders have already baked the fee into higher interest rates.” said C.A.R. President Jeanne Radsick.
“C.A.R. is concerned that because lenders have already begun passing this punitive fee onto consumers, it will hinder the ability of California families to take advantage of the historically low interest rates.”
Fannie and Freddie also will exempt refinance loans with loan balances below $125,000. Affordable refinance products, Home Ready and Home Possible, are also exempt.
The FHFA reported that, throughout the pandemic to protect borrowers and renters while supporting the mortgage market, Fannie and Freddie have been allowed to:
Offer forbearance on multifamily and single-family mortgages;
Buy loans in forbearance;
Modify mortgage terms to reduce monthly payments and simplify repayment options;
Provide protections for tenants in properties in forbearance; and
Provide loan processing flexibility.