Conventional Refinance Pricing Adjustment
Fannie Mae and Freddie Mac announced an adverse market fee of 50 bps to be charged to all refinance loans.
Fairway Wholesale Lending began implementing this charge on all refinances effective immediately. All loans locked on and after 08/13/2020 will include the 50 bps charge (until further notice).
Refer to 2020-32 and LL-2020-12 for more details.
Fairway Removes COVID Cash-Out Refinance Adjustment
As a reminder, Fairway Wholesale Lending has removed the 50 bps COVID cash-out refinance adjustment effective as of 08/13/2020.
Important! Tell Congress: Urge FHFA and the GSEs to Withdraw Adverse Market Refinance Fee
As provided above, the GSE’s have released lender letters applying a new adverse market fee to all refinance transactions. The MBA has been working diligently to understand and block the anticipated imposition of a 50 bps adverse market fee on refinance loans purchased by GSEs, and released a statement to the media in response.
Fairway Wholesale Lending urges everyone (if not done already) to do the very simple action of contacting your U.S. Senators and House of Representative for your State/district to strongly disagree with the FHFA Commissioner’s decision (without any warning) to increase the cost of GSE (Conventional) Refinances with a .5% fee, effective immediately.
Click on the applicable link below to do your part in the “Call to Action”.
USDA Handbook Updates
Last month, USDA announced future updates being made to Chapter 15 of their handbook. These updates have been published and updated in Knowledge Owl where applicable. There were no changes made to guidelines.Additionally, updates to Chapter 13 have been provided due to duplicate information throughout the chapter, which has now been consolidated. In this update, USDA has clarified that modular homes are considered stick-built and USDA will follow standard SFR requirements. This information was not previously provided in the handbook.
Due to COVID delays, some HOAs are taking much longer to complete and return the required documents. Please be aware that the FWL Condo Department review process may be at longer turn times so ensure you are setting proper expectations.
Note: Engaging the seller on the transaction may potentially speed up the HOA.