Adverse Market Fee

The FHFA has implemented a 50bps hit on any refinance purchase by a Fannie or Freddie after December 1, 2020. The “adverse market” fee was vehemently opposed by realtors and mortgage lenders who achieved a delay in its immediate implementation. Further efforts to rescind the fee have proven unsuccessful. The fee will result in increased interest rates to consumers in comparison to rates had the fee not existed.