Washington, D.C. (Aug. 25, 2020)—Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today's Federal Housing Finance Agency announcement on the Adverse Market Fee on refinance loans.
"ICBA welcomes today's announcement by the Federal Housing Finance Agency, Fannie Mae and Freddie Mac regarding the Adverse Market Fee on refinance loans delivered to the government-sponsored enterprises.
"Extending the effective date of this fee gives borrowers and lenders time to close and fund those loans that are currently in process. Further, exempting loan amounts under $125,000—which are mainly composed of lower-income borrowers and refinance loans through Fannie Mae’s HomeReady and Freddie Mac's Home Possible lines—will help keep those loans affordable.
"Like community bankers, the GSEs will incur increased expenses and losses as they work to provide relief to borrowers affected by the coronavirus pandemic. The Adverse Market Fee will help the GSEs deal with those increased expenses while protecting taxpayers.
"ICBA appreciates the FHFA’s willingness to work with all stakeholders on this issue and looks forward to continuing to work with the agency and GSEs to support the U.S. economic recovery."
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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