Singleton: New Fed Housing Fee is “Salt in the Wound”

Trenton – State Senator Troy Singleton, who serves as the Chairman of the Senate Community and Urban Affairs Committee, today issued the following statement in response to the Federal Housing Finance Agency’s recent announcement that Fannie Mae and Freddie Mac will be adding a 0.5% fee on refinanced loans:

“The recent announcement that Fannie and Freddie will be implementing a 0.5% fee on refinanced loans is not at all welcome news. Not when our nation is in the midst of an unprecedented pandemic. Not when workers have been unemployed. Not when families are trying to save money any way they can. 

“Homeowners across the nation are refinancing their homes to take advantage of historically low interest rates, with the careful calculations that doing so will save them money each month. Unfortunately, it is inevitable that this new fee will be passed along to the consumer – adding an estimated $1,400 onto the cost of a re-fi. 

“Over the past several months, I have worked hard on policies to prevent foreclosures. My colleagues and I in the Legislature are doing all that we can to ensure that no one becomes homeless during these unprecedented times, and this work is ongoing. The ability to take advantage of today’s low interest rates to refinance one’s mortgage is an important tool towards keeping families in their homes.

“Refinancing a mortgage note is one way to lower their monthly payment so that it becomes more affordable, freeing up money that can be used for utilities, food, or even to replenish depleted savings. This fee is salt in the wound for so many Americans who have been struggling economically over the past several months.”