The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Fee for loan deliveries effective August 1st. The 50-basis point fee previously being required from lenders will be removed, allowing families to save more money in today’s low rate environment. The elimination of this fee was the number one change that the mortgage industry had been asking the federal regulatory agency to make. The FHFA had begun charging this adverse market fee on refinance mortgages last year to mitigate risks and costs to the agency because of COVID-19. Some believed this fee was simply a way for Government Sponsored Entities (Fannie Mae and Freddie Mac) to increase cashflow during record levels of refinance volume. Either way, the removal of this fee and the increased cash savings of refinancing are benefiting home owners everywhere.
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