Elimination of the Adverse Market Refinance Fee

Today, the Federal Housing Finance Agency announced the elimination of the Adverse Market Refinance Fee, which we assess in the form of a 50 basis points (0.500%) loan-level price adjustment (LLPA). As a result of this announcement, we will no longer assess the LLPA for whole loans purchased on or after August 1, 2021 and for loans delivered into MBS pools with issue dates on or after August 1, 2021.

Fannie Mae published a corresponding Lender Letter LL-2021-13, Elimination of the Adverse Market Refinance Fee communicating this change to its Single-Family sellers.