FHFA eliminates adverse market refinance fee

On July 16, the FHFA announced that Fannie Mae and Freddie Mac (GSEs) will eliminate the adverse market refinance fee for loan deliveries starting August 1. As previously covered by InfoBytes, the adverse market refinance fee was originally slated to apply to certain refinance mortgages with settlement dates on or after September 2020 to cover losses projected as a result of the Covid-19 pandemic. In August 2020, FHFA delayed the implementation of the GSE’s new adverse market refinance fee until December 1, 2020 (covered by InfoBytes here). In the new announcement, FHFA states that “[e]liminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money.”