The housing industry was dealt a big change this week as the Federal Housing Finance Authority decided to raise prices on refinance loans sold to Fannie Mae and Freddie Mac. The group announced the institution of an Adverse Market Refinance Fee. The fee is a 50 basis point added cost for all conventional loan refinances sold to Fannie Mae and Freddie Mac on Sept. 1 and beyond. A bulletin released by Freddie Mac indicated the reasoning is, “a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty.”
What does that mean for borrowers?