FHFA Drops a Bomb; Your Refi Just Got Much More Expensive!
In what can only be described as a cash grab, Fannie and Freddie's regulator just announced a new tax on refinances. Granted, it's not technically a tax, and it wasn't probably even intended to hit the pocketbooks of the American homeowner, but that's unfortunately exactly what it will do. Let's break it down... What was announced? The FHFA, Fannie and Freddie's regulator, is implementing a new price adjustment for all refinance transactions of 0.5% of the loan amount (i.e. $1500 on a $300k loan). This applies to loans delivered to Fannie/Freddie in September and thereafter, which is almost all of them that aren't already well underway. Why?! They are saying it is due to economic and market uncertainty. Some might consider that hard to swallow because this fee didn't exist last week or last...(read more)