In 2020, the Federal Housing Finance Agency (FHFA) announced that they would be introducing a 0.5% fee to refinanced mortgage loans backed by Fannie Mae and Freddie Mac. Starting August 1, 2021, the Adverse Market Refinance Fee will be removed.
As a measure said to be designed to cover losses projected by the COVID-19 pandemic, the Adverse Market Refinance Fee meant borrowers had to pay an additional $500 for every $100,000 refinanced. The elimination of this fee along with low interest rates means that borrowers now stand to save even more money on their home loans with a refinance.
The 50 basis point Adverse Market Refinance Fee was greeted with criticism upon announcement, with several lawmakers and advocacy groups expressing concern about its impact on homeowners. Its elimination comes as a breath of fresh air for those looking to improve their financial position.
We will honor this policy change now, effective immediately! If you are ready to refinance, there is no need to wait. ACB Mortgage Solutions is honoring this fee removal now. With refinancing being more affordable and available than ever before, borrowers should look to make their move and take advantage of the opportunity to submit and close their loans with ACB Mortgage today!