National Association of REALTORSÂ® (NAR) President Vince Malta issued the following statement in response to the Aug. 12 announcement by Fannie Mae and Freddie Mac of plans to impose a new 0.5 percentÂ adverse-market fee on mortgage refinances starting Sept. 1:
“This is very disappointing, and the absolute wrong policyÂ at the wrong time,” said Malta, broker at Malta & Co., Inc., in San Francisco, Calif. “This fee could cost homeowners thousands of dollars, which will destabilize the market and take away opportunity.”
“It also directly contravenes the administration’s own directives for federal agencies to do no harm to homeowners during the coronavirus crisis.”
“It is especially troubling since the GSE’s use theirÂ profits from refinances to support homebuyers in underserved markets-meaning those communities already suffering the most will be harmed the most by this action.”
“Home values and residential real estate are a rock for the American economy right now.Â We should do everything we can to lower costs for households during this crisis, not make homeownership more expensive.”
For more information, please visit www.nar.realtor.