C.A.R. statement on new FHFA refinance fee that increases costs for borrowers

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CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Aug 13, 2020, 14:59 ET

LOS ANGELES, Aug. 13, 2020 /PRNewswire/ -- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement regarding the Federal Housing Finance Agency's (FHFA) announcement to implement a new 0.5% fee on the loan amount for the majority of Fannie Mae and Freddie Mac refinance loans.

"FHFA's new fee on refinance loans is an attempt by the Enterprises to take advantage of the current economic crisis to raise additional revenue, which is consistent with its past actions to increase fees during this pandemic," said C.A.R. President Jeanne Radsick. "Lenders have already begun to rework their rate sheets and are passing the higher costs onto borrowers.

To restrict access to one's equity today when families are struggling with the COVID-19 pandemic and its related economic impacts is extraordinarily poor timing and demonstrates that the FHFA's singular focus of expediting Fannie Mae's and Freddie Mac's removal from conservatorship has taken priority over their role and mission of providing affordable mortgage capital to the housing market," said Radsick.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)