Last week, our industry received some incredible news:
Fannie and Freddie’s Adverse Market Fee is going away on August 1st!
While it's still Purchase Season around here with an extremely hot housing market, I wanted to remind you that this is an ideal time to reach out to your past borrowers. If they didn't take advantage of the Refi Boom between March and November of 2020, this would be an ideal time for them to reconsider a refinance.
Last year, the Adverse Market fee inflicted by Fannie and Freddie in December 2020 threw a wrench in refi business for Brokers and as a result made it difficult for homeowners to justify refinancing their mortgage. Due to the fact that the fee added 0.5% or about $500 for every $100,000 borrowed on their loan -- But now that it's gone, this opens the door for many homeowners.
According to Mortgage data firm Black Knight, they estimated roughly 13 million homeowners were eligible to refinance back in April. With rates continuing to drop again, that number has surely grown even larger. Making it a great time to reach out to your past borrowers about refinancing.
At Princeton Wholesale, we make the refinance process effortless for our Broker Partners and your borrowers. If it's not an effortless experience, we promise to give them $1,000 back at closing. No strings attached. That's The Princeton Promise.
Princeton has exceeded my expectations in terms of service, support and delivery. They have navigated this refinance boom in a way that makes them stand out in a crowd. Robert, Broker Partner
"I was able to close 5 refi's in 15 days with Princeton. Our AE was available all the time including weekends. Underwriters were turning conditions in 24 hours- quicker if it was something simple. And the rates are really good." Don, Broker Partner
Talk to your AE to learn more about the Adverse Market Fee and its effect on your borrowers’ refi's.