FHFA Hears Advocacy’s Voice; Delays Adverse Market Fee to December 1
Posted by Lynn Heider on August 25, 2020
The Federal Housing Finance Agency today delayed implementation of the 0.5% fee on refinances until December 1.
The original implementation date was September 1 and was announced only weeks ahead of time. The Northwest Credit Union Association helped to educate the agency on the unexpected, financial hardship that would place on homeowners who have refinances pending. Credit union advocates who attended last week’s virtual Hike@Home also asked for support from Members of Congress.
While Government-Sponsored Enterprises (GSEs) including Fannie Mae and Freddie Mac can implement such a fee without an act of Congress, unified advocacy helped drive the FHFA’s decision to delay the fee. The delay will protect homeowners with pending refinances and financial institutions with locked in loans from paying the fee. The FHFA also exempted loans under $125,000 from the fee, which will surely protect low-and-moderate income borrowers.
NWCUA thanks all advocates for their work to raise awareness about the impact of the fee, especially with such rapid implementation. Good work, advocates!
Posted in Advocacy on the Move.