On August 12th Fannie Mae and Freddie Mac announced a new extra charge on all refinance mortgages going forward effective immediately. In fact, to avoid this charge we must have our closed loan delivered to Fannie and Freddie by 8/31. This announcement SHOCKED the mortgage industry and we are demanding that they reverse this charge. This charge is an extra 50 bps or $500 on every $100k borrowed, or a rate increase of about ¼% on refinances. This extra cost does not apply to purchase loans.
Our CEO told us this will cost our company about $6 million and I believe it will cost the industry as a whole about $3 billion. Unfortunately, it will be future borrowers who will ultimately pay this tax. UGH!