Fannie Mae and Freddie Mac will impose an “adverse market fee” of 0.5% on most refinanced mortgage loans starting Sept. 1 due to economic uncertainty. This fee will be assessed for both cash-out and no-cash-out refinances. The move could effectively raise monthly mortgage payments for borrowers.
Many in the Mississippi mortgage industry have expressed concern about the fee potential impact on the current refinance market. It could harm borrowers who are currently attempting to refinance but who have not locked in their rate. Borrowers could be faced with new costs days before closing. The increase could cause some borrowers to be unable to move forward, creating more economic uncertainty.
A broad coalition of organizations representing the financial services and housing industries in Mississippi in addition to public interest groups have written Senator Wicker, Senator Hyde-Smith, Congressman Kelly, Congressman Thompson, Congressman Guest, and Congressman Palazzo, to share their concerns.