Reversal of Adverse Market Fee
Effective July 19, 2021, the Adverse Market Fee LLPA that the FHFA directed the agencies to apply to conventional refinance loans last September 2020 has been removed. Your FLCBank secondary market team has already applied a 50 bps credit to any conventional refinance you have locked in your pipeline, excluding loans that are docs out or scheduled to close, to offset this fee. This is a welcome move by the new leadership at FHFA and its willingness to listen to the MBA and other industry sources.
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