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Federal Housing agencies roll out new fee, possibly threatening recoveryFederal Housing agencies roll out new fee, possibly threatening recovery Aug. 13, 2020 9:41 AM ET|About: Federal National Mortgag... (FNMA)|By: Stephen Alpher, SA News Editor While traders were driving up Tesla shares double-digits in wake of the company's stock split, the FHFA yesterday rolled out an adverse-market refinance fee of 0.5% on all refinances purchased by Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) after September 1. Freddie Mac: "As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new Market Condition Credit Fee." On a $291.3K loan - the U.S. median home price in Q2 - that 0.5% will cost either lenders or consumers nearly $1.5K. Already have your refi locked in, but not yet closed? Tough luck - either you or your lender will likely have to pay up. Needless to say, the Mortgage Bankers Association is up in arms, calling the new fee "ill-timed" and counter to the goals of the of the president's weekend executive order to try and support homeowners. Cowen's Jaret Seiberg says the new "Market Condition Credit Fee" is a direct threat to the economic recovery, and a certain negative for both originators and servicers. For Frannie though, Seiberg says the fees will help them pull in an additional $3B per year. Interested players include: Rocket Mortgage (NYSE:RKT), New Residential (NYSE:NRZ), PennyMac Financial (NYSE:PFSI), Mr. Cooper (NASDAQ:COOP), Ocwen Financial (NYSE:OCN). |
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Msg # | Subject | Author | Recs | Date Posted |
3906 | Re: Federal Housing agencies roll out new fee, possibly threatening recovery | crashcardigan | 1 | 8/13/2020 10:31:38 AM |