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Waters Calls on FHFA to Scrap Unnecessary Refinance Penalty
Washington, DC, August 26, 2020
Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the Financial Services Committee, issued the following statement following the Federal Housing Finance Agency’s (FHFA) announcement that it would delay its recently announced adverse market fee for refinance mortgages:
“Just two weeks ago, Director Calabria approved an outrageous penalty, in the middle of a pandemic and an economic recession, that would apply to homeowners looking to use today’s historically low mortgage rates to refinance their mortgages and reduce their mortgage payments. Now, after bipartisan backlash, Director Calabria is attempting to save face by delaying the penalty until December 1st and then only providing very narrow exemptions moving forward. While this delay will buy homeowners looking to refinance some time, at the end of the day, the vast majority of homeowners will still pay the penalty and homeowners in higher cost areas like Los Angeles will disproportionately be excluded from the narrow exemptions provided. I am calling on Director Calabria to terminate this penalty altogether, not just delay it.”
Following the Enterprises' announcement on August 14, 2020 that they would impose a 0.5 percent adverse market fee on all refinance mortgage loans sold to them after September 1, Chairwoman Maxine Waters (D-CA) and Subcommittee on Housing, Community Development and Insurance Chair Wm. Lacy Clay (D-MO) issued a statement slamming the new fee and urging the FHFA to reverse course.