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C.A.R. statement on delay of new FHFA refinance fee that hits borrowers in their pocketbooks

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For release:
August 25, 2020

C.A.R. statement on delay of new FHFA refinance fee that hits borrowers in their pocketbooks

LOS ANGELES (Aug. 25) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement regarding the Federal Housing Finance Agency’s (FHFA) announcement to delay the implementation of a new fee on the loan amount for the majority of Fannie Mae and Freddie Mac refinance loans.

“While delaying the implementation of this fee may be helpful to lenders, it does nothing to mitigate the damage and cost it will have on consumers because lenders have already baked the fee into higher interest rates.” said C.A.R. President Jeanne Radsick. “C.A.R. is concerned that because lenders have already begun passing this punitive fee onto consumers, it will hinder the ability of California families to take advantage of the historically low interest rates.

Moreover, the fee is counter to other actions taken by the government to ease the financial burden on Americans struggling during this pandemic because it is taking money right out of the pockets of homeowners when they can least afford it,” Radsick said.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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