Elements occasionally makes known to our members the need for advocacy. At this time, we’d like your awareness about a decision that’s likely to cause consumers an unnecessary financial burden when refinancing a mortgage.
Late week, the government sponsored enterprise(s) Fannie Mae and Freddie Mac announced plans approved by the Federal Housing Finance Authority (FHFA) to begin charging a new 0.5% "adverse market" fee on refinancing mortgages that they purchase beginning September 1. For an average homeowner looking to refinance a home, this will mean an extra $1,400 they would not have paid in the past.
With so many individuals and families benefitting from historically low interest rates to refinance and lower their monthly payments during the COVID-19 pandemic, this unexpected new fee comes at a challenging time and contradicts many of the actions taken by Congress, the Federal Reserve, and the Administration to support homeowners and the broader economy.
The September 1 effective date for this new fee means that time is of the essence to generate a high volume of messages to our federal representatives as quickly as possible.
Credit unions throughout Indiana and nationwide are building pressure against the FHFA plus Fannie Mae and Freddie Mac in response to announcing these plans. Chairs of both the House Financial Services and Senate Banking Committees are taking an interest in the concerns about this new fee.
Use the link below to add your concern — it takes less than five minutes.