Breaking refi news! COVID-related fee dropped

August 2021

When COVID-19 hit, Fannie Mae and Freddie Mac began charging lenders a special fee to help offset losses they anticipated would begin to cascade because of the economic impact of the pandemic.

This wasn’t widely discussed outside of the circle of industry insiders, but it had the effect of forcing up the rate slightly.

According to this recent report,

“The COVID-19 pandemic financially exacerbated America’s affordable housing crisis. Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money,” acting Federal Housing Finance Agency Director Sandra Thompson said in a statement. Her agency is Fannie and Freddie’s conservator.

“Today’s action furthers FHFA’s priority of supporting affordable housing while simultaneously protecting the safety and soundness of the Enterprises.”

The mortgage industry applauded the move.

“Santa Claus has come early for homeowners looking to refinance their mortgages,” said Greg McBride, chief financial analyst for “The fee had often resulted in an increase of one-eighth percentage point in rate, which was enough to siphon $20 per month in potential savings out of the pockets of borrowers with a $300,000 loan.”

So, what does this mean to you?

If you’ve been holding off on a refinance for any reason, now might be a good time to get in touch with me and have an overall debt and financial review. As you know, I don’t recommend refinancing unless that move fits your short and long-term needs and goals, but if it’s the right thing to do, this could be an opportune moment. Let me do what I do best – assess your situation and offer the best advice I can.

Please drop me an email or call if you have any questions – or someone you know is in need of expert advice. I love to help those you care about. If you have a referral please click the button down below. Your referrals are the heart and lifeblood of my business.



Omar Khamisa
Mission San Jose Mortgage
2111 W. March Lane, Suite B100
Stockton, CA 95207
Office: 209-651-2000
Mobile: 510-648-5535
Fax: 209-434-2311
NMLS: 369325


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