Fannie Mae and Freddie Mac instituted a “refinance fee” of .5% in a surprise move last week. No one in the industry had any idea or warning that this was going to be implemented overnight. So this means that if you want to refinance, your loan will now cost loads more. If your loan amount is $500,000, that’s an extra $2500 in cost. Ouch.
Fannie Mae claims this fee is “in light of market and economic uncertainty resulting in higher risk and costs incurred by Fannie Mae” (https://singlefamily.fanniemae.com/media/23726/display).
And Freddie Mac states: “As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new Market Condition Credit Fee in Price.” (https://guide.freddiemac.com/app/guide/content/a_id/1003972)
Fannie Mae and Freddie Mac see lenders’ profits in this time of low interest rates and high volume, but guess what? A lender isn’t going to absorb that fee from their profit margin; we as homeowners will be the ones paying for it. We should all make our best effort in combating this and requesting its reversal; write to your state representatives here.
We need to do what we can, as this hurts only homeowners.