Removal of adverse mortgage refinance fee is 'great news for homeowners,' expert says - here's why
By Kelsey Ramirez
article
The Biden administration's new head of the FHFA removed the adverse market refinance fee from mortgage refinances. Here's how it impacts you. (iStock)
Many homeowners were recently given an incentive to refinance their mortgage, after President Joe Biden’s administration on Friday
removed the controversial adverse market refinance fee, which was added in 2020 and tacked on to refinanced mortgage loans backed by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
The 0.5% fee was put in place during the coronavirus pandemic to help ease the financial burden that the GSEs faced. Both companies set up policies to help homeowners struggling to make their mortgage payments. But after Aug.1, 2021 that fee will cease to exist, and more homeowners can save money by refinancing their mortgages.