The Federal Housing Finance Agency (FHFA) announced it will delay a proposal to allow Fannie Mae and Freddie Mac (the GSEs) to increase the fee for certain purchased refinanced mortgages. The refinance fee proposal was set to go into effect September 1, 2020. The new implementation date is December 1, 2020. The League opposes the proposed increase and joined other league presidents and CUNA in expressing concern about the impact the fee increase could have on credit union loans.
The FHFA also announced that the GSEs will exempt refinance loans with loan balances below $125,000, nearly half of which are comprised of lower income borrowers at or below 80% of area median income. Affordable refinance products, Home Ready and Home Possible, also are exempt.