news.cuna.org/articles/118307-bipartisan-group-of-senators-call-for-refinance-fee-withdrawal
FHFA

Bipartisan group of Senators call for refinance fee withdrawal

August 24, 2020

A bipartisan group of Senators wrote to Federal Housing Finance Agency (FHFA) Director Mark Calabria last week to echo CUNA’s position that the Fannie Mae/Freddie Mac refinance fee set to go into effect Sept. 1 be withdrawn. Leagues have engaged several of the letter’s signers on the issue, and CUNA has contacted FHFA leadership on several occasions to express opposition to the fee.

The fee would consist of 50 basis points on all loans refinanced through Fannie or Freddie. CUNA has said the fee threatens to undercut the refinance market and will raise costs for credit union borrowers and could price vulnerable potential homeowners out of the market.

Sens. Mike Rounds (R-S.D.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Jerry Moran (R-Kan.), Tina Smith (D-Minn.), Jon Tester (D-Mont.) and Thom Tillis (R-N.C.) signed the letter, requesting immediate withdrawal of the fee.

“That the FHFA) would allow the GSEs to take this course of action, during what is universally agreed to be a period of great economic distress, is surprising and deeply troubling,” the letter reads. “We therefore request that you immediately act to require that the GSEs withdraw this fee to prevent further harm to everyday Americans and our economy.

The Senators note it is “greatly distressing” that the fee was announced with no consultation with Congress and no notice to external stakeholders.