MBA President “stunned” by the FHFA’s new mortgage refinance fee
Today’s Daily Download episode features an interview with Bob Broeksmit, president and CEO of the Mortgage Bankers Association. Broeksmit discusses the Federal Housing Finance Agency’s recent decision to implement a new fee on mortgage refinances, a decision that was made without prior counsel from the MBA.
“[This] puts into effect a massive price increase with virtually no notice, meaning that hundreds of millions of dollars will be taken from the pockets of lenders who cannot pass along this unanticipated cost and worse, consumers will be on the hook for billions starting today when everybody’s costs went up by half a point,” Broeksmit said. “It’s outrageous and unprecedented.”
The announcement, released at the end of the day on Wednesday, stated that refinance mortgage loans sold to Fannie Mae and Freddie Mac after Sept. 1 will include a new adverse-market refinance fee of 0.5%. This fee will be assessed for both cash-out and no-cash-out refinances, and it could cost homeowners $1,400, a move Broeksmit said is disturbing beyond belief.
“At a time when the country is reeling economically, and the government is trying to provide relief and stimulus to this shaken economy,” Broeksmit said. “To grab $1,400 dollars per loan on low-risk refinances at Fannie Mae and Freddie Mac is disturbing beyond belief.”
The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.
HousingWire articles covered in this episode: