The Federal Housing Finance Agency has been considering a surcharge of 0.5% to refinance mortgages otherwise known as the Adverse Market Refinance Fee. This fee was planned in order to offset projected COVID-19 losses of at least $6 billion at the Enterprises (Fannie Mae and Freddie Mac). The money spent at the Enterprises includes $4 billion in losses due to projected forbearance defaults, $1 billion in foreclosure moratorium losses, and $1 billion in servicer compensation and other forbearance expenses. On August 25th, The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to delay the implementation of this refinance fee until December 1st, 2020. The fee was originally scheduled to take effect on September 1st, 2020. FHFA also announced that refinance loans with a balance below $125,000 will be exempt, along with Home Ready and Home Possible refinance products.
Connect With Us
