MBA Statement in Response to Changes in GSE Adverse Market Refinance Fee
WASHINGTON, D.C. (August 25, 2020) - MBA Statement by President and CEO Bob Broeksmit, CMB, regarding changes to the GSEs' adverse market refinance fee:
"We welcome today's announcement from the FHFA amending the recently announced Adverse Market Refinance Fee from Fannie Mae and Freddie Mac. Extending the effective date will permit lenders to close refinance loans that are in their pipelines and honor the rate lock commitments they made to their borrowers, ensuring that economic relief in the form of record low interest rates will continue to flow to consumers.
"We understand that the pandemic and the associated borrower assistance measures the GSEs have instituted impose significant costs on the GSEs and on mortgage servicers, and we are gratified that the revised guidelines also reflect the need to lessen the impact on borrowers with modest incomes or low loan amounts. Likewise, we support the previously announced exemption of all home purchase loans.
"We look forward to ongoing collaboration with the FHFA, the GSEs, and other stakeholders to ensure that future policy and pricing decisions strike the right balance between allowing the GSEs to appropriately manage their risk and continuing to offer affordable and sustainable home purchase and refinance opportunities to all qualified borrowers."