American Banker, September 16 2020, Calabria to Congress: If you don’t like crisis fee, then fund GSEs
The adverse market fee is meant to aid Fannie and Freddie with losses associated with the COVID-19 pandemic. However, the fee could raise costs by about $1400 for the average customer rather than helping homeowners take advantage of the historically low mortgage rates.
Calabria testified before the House Financial Services Committee, where members of both parties questioned the fee imposed on refinancings. The added charge is meant to help Fannie and Freddie shoulder losses associated with the COVID-19 pandemic, but the fee could raise costs by an estimated $1,400 for the average consumer.
“Rather than allowing homeowners to take advantage of historically low mortgage rates, Director Calabria announced a new refinance fee that would take some of the savings that would have otherwise gone into the pockets of families and instead redirect that money into the pockets of Fannie and Freddie,” said House Financial Services Committee Chairwoman Maxine Waters, D-Calif.