Bulletin 2020-072 Fannie/Freddie Adverse Market Refinance Fee

Fannie/Freddie Adverse Market Refinance Fee

The Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac (the Enterprises) to delay the implementation date of their Adverse Market Refinance Fee until December 1, 2020. The fee was previously scheduled to take effect September 1, 2020. 


In order to align with Fannie Mae and Freddie Mac, NewRez will be applying a 50bps fee to all 75 Day Best Effort locks effective September 1, 2020.  The new Adverse Market Refinance Fee applies to Agency cash-out and limited cash-out refinance transactions. Exempt from the fee are HomeReady, Home Possible, and refinance transactions with loan balances less than $125,000.  Any extensions or relocks beyond November 13 will be subject to the Adverse Market Refinance Fee.  Any loans purchased after November 20, will also be subject to the fee.