Washington, D.C. (Aug. 13, 2020) — The Independent Community Bankers of America (ICBA) today issued a statement regarding the recent decision made by Fannie Mae and Freddie Mac to impose a 50 basis point fee on most refinance mortgages that are delivered to the GSEs as of September 1, 2020.
“This decision made by Fannie Mae and Freddie Mac will unnecessarily raise the cost of mortgage credit for community banking customers and will negatively impact the sectors of the U.S. economy that have thus far weathered the steepest economic downturn in modern history. This decision is contrary to recent legislative, regulatory, and administrative actions of Congress, the Administration, the Federal Reserve and the U.S Treasury to support consumers, and the economy.
“By applying the fee retroactively to loans where the pricing is locked with consumers, FHFA and the GSEs will cause financial losses to those lenders who are struggling to comply with government mandated forbearance, loan workouts and modifications on all forms of credit in response to the COVID pandemic. This is the wrong action at precisely the wrong time.
ICBA urges FHFA and GSEs to rescind this destructive and unnecessary tax on homeowners immediately.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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