The California Association of Realtors (CAR) issued a statement regarding the Federal Housing Finance Agency’s (FHFA) announcement to implement a new 0.5 percent fee on the loan amount for the majority of Fannie Mae and Freddie Mac refinance loans.
“FHFA’s new fee on refinance loans is an attempt by the Enterprises to take advantage of the current economic crisis to raise additional revenue, which is consistent with its past actions to increase fees during this pandemic,” CAR President Jeanne Radsick said in a press release. “Lenders have already begun to rework their rate sheets and are passing the higher costs onto borrowers.”
Radsick also said that to restrict access to equity today when families are struggling with the COVID-19 pandemic and its related economic impacts was poor timing.
“It also demonstrates that the FHFA’s singular focus of expediting Fannie Mae’s and Freddie Mac’s removal from conservatorship has taken priority over their role and mission of providing affordable mortgage capital to the housing market,” she added.