Columbus MS Mortgage Company Discusses the Elimination of the Adverse Market Refinance Fee
August 09, 2021 at 16:11
JTS & Co. Mortgage Professionals, a company based in Columbus, MS, would like to share recent news that Fannie Mae and Freddie Mac (the Enterprises) has gotten rid of the Adverse Market Fee, that went into effect on August 1st, to help families decrease their housing cost. This fee was previously put in place to cover losses projected because of the pandemic. With the elimination of the fee, lenders are no longer required to pay the Enterprises a 50-basis point fee when refinanced home finance agreements are delivered.
The American Bankers Association (ABA) and various advocacy groups were staunch critics of the fee and strongly requested its withdrawal. Several lawmakers were also concerned that the fee will make it more difficult for people to buy a home.
With the news about the removal of the fee, ABA President and CEO Rob Nichols said, “The elimination of this fee will improve the affordability and availability of credit for borrowers, and ultimately help those seeking to refinance into lower rate loans and improve their financial condition as the country continues to recover from the COVID-19 pandemic. ABA and its members appreciate FHFA’s willingness to hear the concerns raised by ABA and others and to take action which will greatly benefit our nation’s struggling homeowners.”
The Federal Housing Finance Agency (FHFA) announced on July 16 that Fannie Mae and Freddie Mac will be eliminating the Adverse Market Refinance Fee for loan deliveries effective August 1, 2021. The FHFA explained that the success of their efforts, including that of the Enterprises, to minimize the impact of the pandemic allowed them to decide on the early removal of the controversial fee.
It was noted that a significant percentage of the Fannie Mae and Freddie Mac borrowers were able to successfully exit COVID-19 forbearance. Around 2 percent of the single-family home finance agreements guaranteed by the Enterprises remained in forbearance as of April 2021, which was down compared to the approximately 5 percent in May 2020. The FHFA will continue to track developments regarding the housing finance system to possibly make some adjustments if necessary.
JTS & Co. is an experienced home financing company that people buying a home can trust to help them get the lowest rate, have faster close times, and the best customer service. They have been serving as home financing advisors for people throughout Mississippi and Alabama since 1996. They have also been named the #1 Home Financing Company in the Golden Triangle for 11 years.
Tyler Farnham from JTS & Co. Says, “Even if you were previously denied a home financing deal, didn’t qualify, or weren’t happy with the terms you were offered earlier, contact us today to see if we can put you back on track with a financing arrangement you’ll like.”
Those who are interested in knowing more about the services provided by JTS & Co. can check out their website, contact them on the phone or email, or view the company Facebook page.
For more information about JTS & Co., contact the company here:
JTS & Co.
4158 Hwy. 45 North,
Columbus, MS 39705