BIG NEWS!
With 5 days to spare… FHFA gave into the demands of the mortgage industry and delayed the 50bps refi tax that was announced just 2 weeks earlier. This now give us the lenders time to plan and prepare the implementation process of this adjustment (it also means that we all have to scramble around and roll back the adjustment that we applied… but that’s okay)!
Look we (the lenders) were acting as “Capo’s” for FNMA and FHLMC… so it’s only right that we give that money BACK to the consumers. It’s not our money. Imagine if you didn’t deliver your money to the Boss and decided to keep it?!
What this means for the borrower is that you’ll see a “lender credit” applied towards your closing costs – On a $200K Loan Amount, borrowers should receive a credit of about a $1,000.
Expect companies to start applying this adjustment around November… just in time for FNMA and FHLMC to take advantage of those Black Friday Sales!
Stay safe. Stay healthy.
Talk to you soon,
MJ