New Refinancing Fee Could Roil Mortgage Market

NAR urges no new actions to harm housing market

WASHINGTON (August 13, 2020) – National Association of Realtors® President Vince Malta issued the following statement in response to Wednesday’s announcement by Fannie Mae and Freddie Mac of plans to impose a new 0.5% adverse-market fee on mortgage refinances starting September 1:

“This is very disappointing, and the absolute wrong policy at the wrong time,” said Malta, broker at Malta & Co., Inc., in San Francisco, CA. “This fee could cost homeowners thousands of dollars, which will destabilize the market and take away opportunity.”

“It also directly contravenes the administration’s own directives for federal agencies to do no harm to homeowners during the coronavirus crisis.”

“It is especially troubling since the GSE’s use their profits from refinances to support homebuyers in underserved markets-meaning those communities already suffering the most will be harmed the most by this action.”

“Home values and residential real estate are a rock for the American economy right now. We should do everything we can to lower costs for households during this crisis, not make homeownership more expensive.”

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

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