The 10 bps is passed onto the borrower in the form of a higher note rate. Trade group officials argue that wealthy homeowners generally do not use GSE loans, so they're exempt from the fee.
Multiple lenders tell Inside Mortgage Finance that, in late March, the enterprises began rejecting loans that would have been easily approved in early March.
Nevertheless, rumors are circulating that the Biden administration is preparing to test the legal waters by having the FHA and VA extend their REO eviction moratoriums to the end of the year. These were also scheduled to end on Saturday. If that were to happen, most observers believe FHFA would follow suit.
The mortgage giant’s $3.6 billion profit for the second quarter benefited by as much as $1 billion in revenue from the controversial adverse market refinance fee.
Rob Zimmer, head of external communications for CMLA, described it this way: "It’s a terrible policy idea, given that only the middle class pays it. Wealthy households paying cash for homes or using jumbo mortgages won’t pay a dime."