Rocket Drops Refi Fee; Will Others Follow Suit?

The Federal Housing Finance Agency announced it is dropping the COVID-era Adverse Market Refinance Fee beginning August 1. But what does that mean for borrowers who were already in the process of refinancing loans? That depends on the lender. Rocket Mortgage notified brokers last week that it is dropping the fee immediately for loans in progress. Others haven’t publicly committed to removing the fee – or did not respond to Mortgage Note requests for comment. “As you know, we already repriced earlier today, instantly passing the savings along to your borrowers on all new registrations and your entire floating pipeline,” Rocket said in an email to brokers. “We’re also in the process of applying the 50 bps credit to your…

Mortgage Roundup (7/19/21) – Supporting Veterans, New Rules for Refi Relief

Good morning! Today is Monday, July 19. Concerns about the Delta variant of the Coronavirus are putting downward pressure on stock and commodity futures. At least one U.S. gymnast has tested positive for COVID-19. Europe is reeling from a series of landslides. The Biden administration is blaming China for a hack of Microsoft Exchange email server software that compromised tens of thousands of computers around the world earlier this year. And in mortgage and housing news… Mortgage refinances spike: Low interest rates drove a 20% spike in mortgage refinance rates last week, with a declining 30-year fixed rate spurring heavy refi activity. Supply prices down: Wood futures are declining from their dizzying highs earlier this year, signalling potential relief for homebuilders, though…

Refinance Option Available To Low-Income Borrowers

The Federal Housing Finance Agency announced a new refinance option that will provide low-income borrowers with reduced interest rates and lower monthly payments. The new option is available to borrowers with Freddie Mac and Fannie Mae backed loans. It includes: A requirement that the lender provides a savings of at least $50 in the borrower’s monthly mortgage payment, and at least a 50-basis point reduction in the borrower’s interest rate.A maximum $500 credit from the lender for an appraisal if the borrower is not eligible for an appraisal waiver (the Enterprises will provide the lender a credit of $500 upon the loan’​s sale to an Enterprise).A waiver of the 50 basis point up-front adverse market refinance fee for borrowers with loan balances…

How Much Can You Save By Refinancing?

Mortgage rates are sitting at record lows and US homeowners are taking advantage by refinancing their mortgages. For those who haven’t refinanced, Zillow is offering a look at how much they could save on the typical house in markets across the country. “Choosing whether to refinance your mortgage is ultimately a personal choice, but recent moves in mortgage rates have probably made that decision a whole lot easier for those who qualify,” Zillow economist Matthew Speakman said. “Mortgage rate declines have allowed many to lower their monthly mortgage payment or tap into the equity they’ve built in their home by refinancing their loan – offering some financial stability to many in a time of great economic uncertainty. With rates poised to…

FHFA Delays Refinance Fee For 3 Months

Faced with a barrage of criticism, the Federal Housing Finance Agency announced Tuesday that it is delaying the implementation date of the “adverse market refinance fee” for three months. The fee – which drew criticism from members of Congress, industry groups and housing advocates – was scheduled to take effect next week. It is now going to take effect Dec. 1, FHFA announced FHFA also said the fee will not apply to refinances on loans below $125,000. “We welcome today’s announcement from the FHFA amending the recently announced Adverse Market Refinance Fee from Fannie Mae and Freddie Mac,” Mortgage Bankers Association President and CEO Bob Broeksmit said. “Extending the effective date will permit lenders to close refinance loans that are…