[New post] Mortgage Rates Drop as Fannie Mae and Freddie Mac Loans End Adverse Market Refinance Fee

Sea Point Realtors posted: " Mikolette / Getty Images / iStockphoto The Federal Housing Finance Agency announced last week that Fannie Mae and Freddie Mac would be abolishing the Adverse Market refinancing fee on loan deliveries effective August 1, 20" Respond to this post by replying above this line New post on Sea Point Realtors Mortgage Rates Drop as Fannie Mae and Freddie Mac Loans End Adverse Market Refinance Fee by Sea Point Realtors Mikolette / Getty Images / iStockphoto The Federal Housing Finance Agency announced last week that Fannie Mae and Freddie Mac would be abolishing the Adverse Market refinancing fee on loan deliveries effective August 1, 2021. This decision was made to help families lower their housing costs so they can save more money at the agency. See: Moratorium On Foreclosure Ends In 10 Days – Here Are Your Options Find: 13 Best Programs For First Time Home Buyers Lenders no longer have to pay companies 50 basis points to deliver refinanced mortgages. This fee should cover the projected losses as a result of the pandemic. These guidelines helped lessen the impact of the pandemic, according to the FHFA, and were effective enough to withdraw the fee. The FHFA had hoped that lenders who charged borrowers the Adverse Market Refinance Fee would pass the cost savings on to borrowers. "The COVID-19 pandemic has exacerbated America's affordable housing crisis financially. The elimination of the Adverse Market Refinance Fee will help families take advantage of the low interest rate environment to save more money, "Acting Director Sandra L. Thompson said in a statement. "Today's action supports the FHFA's priority of supporting affordable housing while protecting the security and solidity of businesses." See: The volume of mortgage applications has reached its lowest level since the pandemic Find out: This is how much mortgage rates have fluctuated over the past ten years This move has received praise from the mortgage industry. "Santa comes early for homeowners looking to refinance their mortgages," said Greg McBride, senior financial analyst for Bankrate.com, reports CNBC. "The fee had often increased the interest rate by an eighth of a percentage point, which was enough to siphon off $ 20 in potential savings for borrowers on a $ 300,000 per month loan." The majority of corporate borrowers have left COVID-19 forbearance, according to FHFA. In April, 2% of Fannie Mae and Freddie Mac guaranteed single-family mortgages remained tolerated, up from 5% in May 2020. More from GOBankingRates About the author Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but now lives in Ohio, where she attended Ohio State University and lives with her two young children and her fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide. source https://seapointrealtors.com/2021/07/22/mortgage-rates-drop-as-fannie-mae-and-freddie-mac-loans-end-adverse-market-refinance-fee/ This free site is ad-supported. Learn more ​ Sea Point Realtors | July 22, 2021 at 2:40 pm | Categories: Uncategorized | URL: https://wp.me/pd9jJd-AM Comment    See all comments    Like Unsubscribe to no longer receive posts from Sea Point Realtors. Change your email settings at Manage Subscriptions. Trouble clicking? Copy and paste this URL into your browser: https://seapointrealtors.wordpress.com/2021/07/22/mortgage-rates-drop-as-fannie-mae-and-freddie-mac-loans-end-adverse-market-refinance-fee/ Thanks for flying with WordPress.com