New Fannie, Freddie fees could cost borrowers big

The Federal Housing Finance Agency’s new 50-basis-point fee could cost borrowers an extra $21,000, according to a new analysis by Mortgage Capital Trading (MCT). The “Adverse Market Refinance Fee” (AMRF) was announced by Fannie Mae and Freddie Mac last week, and will be applied to cash-out and no-cash-out refinances, with the exception of some types of construction conversion mortgages, effective Sept. 1. Fannie Mae cited “market and economic uncertainty” as justification for the fee, but the decision has been widely condemned by industry groups. Now MCT says the new rule will cost borrowers big. “According to data from the MCTLive! Secondary marketing platform, MCT estimates increases in borrower rates of up to 0.375%, leading to the average borrower paying as much as an additional $21,000 over the typical thirty-year loan term,” MCT said in an email to MPA. &ld