{"id":139560,"date":"2021-08-17T13:30:00","date_gmt":"2021-08-17T19:30:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=139560"},"modified":"2023-03-27T02:25:05","modified_gmt":"2023-03-27T08:25:05","slug":"fhfa-refinance-fee-2021","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/fhfa-refinance-fee-2021","title":{"rendered":"FHFA Eliminates Their Refinance Fee\u2014What Does This Mean for Real Estate?"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC9854779645&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p class=\"wp-block-paragraph\">Almost a year ago to the day, the Federal Housing Finance Agency (FHFA) announced a new refinance fee which would end up costing homeowners thousands. It was a surprise announcement by then-director Mark Calabria, which would take effect in a loan-level price adjustment equal to 0.5% of the loan amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mark Calabria believes in the privatization of industries, free from government control. Fannie Mae (FNMA) and Freddie Mac (FHLMC) haven&#8217;t been since the mortgage bailout after the 2008 crash, which kept FNMA and Freddie Mac from going under and placed them under conservatorship by the newly created Federal Housing Finance Administration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mark Calabria didn&#8217;t like this and wanted to bring FNMA and FHLMC out from under this umbrella of control. To do this, he needed cash, and lots of it. Leading up to the forbearance options that became available to homeowners in 2020, the cash reserves between Fannie and Freddie were close to $30 billion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why was the refinance fee added?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once homeowners started taking advantage of forbearance options, mortgage servicers needed liquidity to bridge the gap in payments no longer coming in on many mortgages throughout the United States. Fannie and Freddie had to use their cash reserves to make the payments on non-performing mortgages so that the underlying bonds continued to give a yield to the investors holding them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the underlying bonds securitizing residential mortgages in this country stopped performing, bonds would become a risky investment, which would cause their prices to drop significantly due to massive sell-offs. If this were to happen, rates would skyrocket.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pressure mounted on all sides for Calabria to use the FHFA&#8217;s pile of cash (via Fannie and Freddie) to hold the economy together by helping mortgage servicers continue to make their necessary payments on underlying mortgage-backed securities, which they serviced. He caved to the pressure but looked to America&#8217;s homeowners to bring back the missing cash. This took place in the form of the Adverse Market Refinance Fee.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n  <div id=\"posts_lists-block_611698a41fecc\" class=\"  my-10\">\n    <div class=\"\">\n      <!-- Column One -->\n      <div>\n                  <h2 class=\"mt-0 mb-1 js-toc-ignore\">\n            More news from BiggerPockets          <\/h2>  \n                  \n                  <div class=\"mt-1 mb-0 text-sm mb-2 excerpt\">\n            <span data-sheets-value=\"{\" data-sheets-userformat=\"{\">Stay on top of the latest real estate news, trends, government policies, and more.<\/span>          <\/div>\n        \n                  <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"no-underline text-themeBlue-medium hover:underline uppercase font-semibold text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n        \n        <div class=\"grid grid-cols-1 gap-y-4 lg:gap-y-7 mt-5\">\n          \n<article \n\tid=\"post-185235\" \n\tclass=\"content-card mb-0 flex flex-col  post-185235 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/zillow-faces-major-lawsuit-over-alleged-monopoly\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/10\/lawsuit_canva-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Zillow Faces a New Major Lawsuit Over an Alleged Monopoly\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">5 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/cropped-Jeff-V-Garcia-Photography-71788-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2025-10-17T10:26:15-06:00\">Oct 17, 2025<\/time><time class=\"updated\" datetime=\"2025-10-17T10:26:42-06:00\">Oct 17, 2025<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jeffvasishta\" class=\"no-underline line-clamp-1\" target=\"_blank\">Jeff Vasishta<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/zillow-faces-major-lawsuit-over-alleged-monopoly\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tZillow Faces a New Major Lawsuit Over an Alleged Monopoly\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">If you want to buy, sell, or rent real estate in the U.S., Zillow appears to be the only game in town. That\u2019s according to the Semrush Traffic Analytics tool,&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"185235\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-185235 -->\n<article \n\tid=\"post-184780\" \n\tclass=\"content-card mb-0 flex flex-col  post-184780 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/fed-cuts-rates-as-employment-softens-but-real-estate-recovery-remains-uncertain\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/08\/fed_canva-2-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Fed Cuts Rates as Employment Softens, But Real Estate Recovery Remains Uncertain\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">4 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/cropped-Jeff-V-Garcia-Photography-71788-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2025-09-17T13:01:25-06:00\">Sep 17, 2025<\/time><time class=\"updated\" datetime=\"2025-09-17T13:01:29-06:00\">Sep 17, 2025<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jeffvasishta\" class=\"no-underline line-clamp-1\" target=\"_blank\">Jeff Vasishta<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/fed-cuts-rates-as-employment-softens-but-real-estate-recovery-remains-uncertain\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tFed Cuts Rates as Employment Softens, But Real Estate Recovery Remains Uncertain\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Following a weakening labor market, the Federal Reserve&#8217;s announcement that it will cut interest rates by 0.25% on Sept. 17 comes as welcome relief to the real estate industry, as&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"184780\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-184780 -->\n<article \n\tid=\"post-146041\" \n\tclass=\"content-card mb-0 flex flex-col  post-146041 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news category-biggerpockets-daily\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/when-will-the-fed-lower-rates-again\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/federal-reserve-1-768x388-1-340x225.webp\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"When Will The Fed Lower Rates Again? Sooner Than You Think\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">2 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/secure.gravatar.com\/avatar\/e8ccac5c5e56c35ffe5ca19e1c938129c6a3c884b861fc443e53c35f5ca54328?s=150&#038;d=mp&#038;r=g\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2022-12-19T08:59:28-07:00\">Dec 19, 2022<\/time><time class=\"updated\" datetime=\"2023-08-09T10:43:28-06:00\">Aug 09, 2023<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/lindsayfrankel\" class=\"no-underline line-clamp-1\" target=\"_blank\">Lindsay Frankel<svg class=\"h-5 inline ml-2\" viewBox=\"0 0 21 21\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><g clip-path=\"url(#a)\"><path d=\"M19.253 5.25a1.75 1.75 0 0 0-1.663 2.29l-1.42.902a2.188 2.188 0 0 1-2.868-.46L11.91 6.28a1.73 1.73 0 0 0 .342-1.03 1.75 1.75 0 1 0-3.5 0c0 .37.12.732.34 1.03L7.701 7.982a2.188 2.188 0 0 1-2.868.46l-1.42-.903a1.75 1.75 0 1 0-1.816 1.203l1.035 6.205a.438.438 0 0 0 .43.366H17.94a.437.437 0 0 0 .431-.366l1.035-6.204a1.75 1.75 0 0 0-.153-3.494Z\" fill=\"#FFC107\"\/><path d=\"M10.502 17.064c4.108 0 7.438-.98 7.438-2.188 0-1.208-3.33-2.188-7.438-2.188-4.109 0-7.439.98-7.439 2.188 0 1.208 3.33 2.188 7.439 2.188Z\" fill=\"#FFA000\"\/><path d=\"M10.502 17.501c-3.915 0-7.877-.901-7.877-2.625s3.962-2.625 7.877-2.625c3.914 0 7.876.9 7.876 2.625 0 1.724-3.962 2.625-7.876 2.625Zm0-4.375c-4.597 0-7.001 1.137-7.001 1.75s2.404 1.75 7 1.75c4.597 0 7.002-1.138 7.002-1.75 0-.613-2.405-1.75-7.001-1.75Z\" fill=\"#FFD54F\"\/><\/g><defs><clipPath id=\"a\"><path fill=\"#fff\" d=\"M0 0h21v21H0z\"\/><\/clipPath><\/defs><\/svg><\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/when-will-the-fed-lower-rates-again\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tWhen Will The Fed Lower Rates Again? Sooner Than You Think\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Last week, the Fed raised its benchmark interest rate by&nbsp;half a percentage point, a slowdown from previous sprints. Still, the federal funds rate is at its highest since 2007. While&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"146041\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-146041 -->\n<article \n\tid=\"post-145886\" \n\tclass=\"content-card mb-0 flex flex-col  post-145886 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news category-biggerpockets-daily\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-long-it-takes-to-afford-rent-report\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/for-rent--340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"New Zillow Report Suggests Renters Must Work 63 Hours To Afford Rent In The U.S.\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">3 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/07\/cropped-profile_small-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2022-12-07T14:02:45-07:00\">Dec 07, 2022<\/time><time class=\"updated\" datetime=\"2023-08-09T10:31:18-06:00\">Aug 09, 2023<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/annacottrell\" class=\"no-underline line-clamp-1\" target=\"_blank\">Anna K. Cottrell<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/how-long-it-takes-to-afford-rent-report\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tNew Zillow Report Suggests Renters Must Work 63 Hours To Afford Rent In The U.S.\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">A recent report from&nbsp;Zillow&nbsp;highlights the U.S. affordability crisis creatively. Rather than just focusing on the rapid price growth in rents across the country over the past couple of years, the&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"145886\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-145886 -->        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n\n  \n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Was the refinance fee the correct approach?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An interested observer could look at the new refinance fee in a couple of different ways.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some might say it was a reasonable approach to a liquidity crisis sitting on the steps of the FHFA\u2014one that had been making its rounds through hedge funds, agencies, and Fortune 500 companies alike since the start of the COVID-19 pandemic. But it could also be viewed as a way to fund his vision of Fannie and Freddie&#8217;s future\u2014freedom from government conservatorship. However you interpret it, it cost Americans money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When you get a mortgage, 64 things can change the rate. These are known as LLPAs (loan-level price adjustments). The most common are credit score, loan to value, property type, and mortgage purpose (e.g., cash-out or purchase).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, let&#8217;s say you are offered a rate of 2.75% on a 30-year fixed mortgage, with no points. If this were a refinance, and the Adverse Market Refinance Fee were to apply, then 2.75% would no longer be par (no points); it would have a cost of a half of a point, equivalent to 0.5% of the amount borrowed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To put this into perspective, any time you obtain a mortgage, you can buy down the interest rate from the no points option. Typically, a half-point fee would lower your rate by around 0.25%, so in effect, this adverse market refinance fee increased rates on refinances by about a quarter of a percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This made a lot of people mad. While most of the country was taking advantage of lower interest rates on their mortgages, set in motion by the Federal Reserve to stimulate the economy during times of hardship, the FHFA was increasing rates, marching to the beat of a different drum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As was the case with the Consumer Finance Protection Bureau under Donald Trump, it was unclear if the President of the United States had the authority to fire the director of the FHFA. However, in June (Collins vs. Yellen), the Supreme Court ruled that the President can fire the director of the FHFA at will, as opposed to for cause only.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It didn&#8217;t take long for Director Calabria to tender his resignation\u2014DC&#8217;s formal approach to those who find themselves serving at the displeasure of the President.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div id=\"hero-block_62ee867235a1c\" class=\"first:mt-0 hero-block py-4    has-background has-slate-300-background-color has-text-color has-slate-800-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-2\/3 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-slate-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Prepare for a market shift<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px\">Modify your investing tactics\u2014not only to survive an economic downturn, but to also thrive! Take any recession in stride and never be intimidated by a market shift again with <em><a class=\"rank-math-link\" href=\"https:\/\/store.biggerpockets.com\/products\/recession-proof-real-estate-investing?utm_source=blog&amp;utm_medium=blog%20banner\" target=\"_blank\">Recession-Proof Real Estate Investing<\/a><\/em>.<\/p>\n\n\n\n<div id=button-custom-event-block_64138705d4d27 class='button-custom-event'>\n      <a href=\"https:\/\/store.biggerpockets.com\/products\/recession-proof-real-estate-investing?utm_source=blog&#038;utm_medium=marketing_block\" x-on:click=\"window.analytics.track(&#039;Blog Block | Publishing: Recession Proof Book&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/fhfa-refinance-fee-2021&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Get Yours Now<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/04\/recession-proof.png\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What&#8217;s happening now?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Biden promptly appointed Sandra Thompson as the acting director of the FHFA. Within days, Director Thompson eliminated the Adverse Market Refinance Fee. &#8220;The COVID-19 pandemic financially exacerbated America&#8217;s affordable housing crisis. Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money,&#8221; said Thompson. &#8220;Today&#8217;s action furthers FHFA&#8217;s priority of supporting affordable housing while simultaneously protecting the safety and soundness of the Enterprises.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The briefing also noted that mortgage forbearances were sitting below 2%, down from a high of 5% in May of 2020. Therefore, with less of a cash crisis and ongoing need, Director Thompson eliminated the fee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bill Dallas, mortgage mogul, and current CEO of Finance of America, recently railed against what he called the prehistoric underwriting guidelines of Fannie Mae and Freddie Mac. To quote an MPA article by David Kitai, &#8220;Dallas believes that this &#8216;antiquated&#8217; system persists because agency loans are underwritten by the government and subject to fair lending requirements that regulate borrowers through the same funnel.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He goes on to say, &#8220;Homebuyers are entering a challenging and competitive housing market and Dallas believes the mortgage market now is failing to enable borrowers who don&#8217;t fit in the strict value parameters of an agency loan.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Much to the chagrin of homeowners and loan officers, Director Calabria&#8217;s actions were much needed and overdue. We&#8217;ve not had a director of this agency pushing to get out from government conservatorship since this started after the 2008 housing crash. Keeping the agencies under this umbrella creates an unlevel playing field in the mortgage space by placing low-risk favoritism on mortgages sold to Fannie Mae and Freddie Mac.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are many mortgage programs in the market that fill various needs, but the most common fall inside the square box created by Fannie Mae and Freddie Mac. By opening up the playing field, you would start to see more mortgage options competing with each other on rate and terms, widening the possibilities for non-conventional buyers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Housing Finance Agency recently revoked the refinance fee they added in 2020. What does this mean for investors?<\/p>\n","protected":false},"author":439496,"featured_media":139562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,5528],"tags":[],"class_list":["post-139560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-real-estate-news"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/139560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/439496"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=139560"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/139560\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/139562"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=139560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=139560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=139560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}