ABBA First Mortgage News

Fannie and Freddie added a half point fee and then they took it back

On Tuesday afternoon, Freddie Mac and Fannie Mae announced that the implementation the GSEs’ universally hated Adverse Market Refinance Fee would be postponed from September 1 until December 1.

Rumors of the delay surfaced over the weekend, after the Wall Street Journal reported that the Federal Housing Finance Agency had been in contact with mortgage industry groups, many of whom expressed outrage at the fee and its bizarre mid-pandemic timing.

“It was completely uncalled for and at the worst time possible,” Arcus Lending CEO Shashank Shekhar said of the fee. “The economy is tanking, the unemployment rate is near an all-time high, and the only saving grace, financially speaking, is the low mortgage rate.”

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