Release: New Fannie Mae, Freddie Mac Fee on Refinances Harms Tennesseans

The Tennessee Bankers Association, along with the Tennessee Mortgage Bankers Association and Tennessee Realtors®, strongly disagrees with the decision by the Federal Housing Finance Agency to approve Fannie Mae and Freddie Mac’s request to impose an “adverse market refinance fee” of 50 basis points on refinanced mortgages. The decision was announced August 13, and the fees take effect on September 1.

This fee—which would amount to an additional $1,400 for the typical consumer, based on the average GSE loan size—will raise costs for families trying to make ends meet in these challenging times.
The recent refinance activity and lower interest rates have not only helped homeowners lower their monthly payments, but are also reducing risk to the GSEs and taxpayers. The pricing increase is particularly harmful for our nation’s low- and moderate-income homeowners and the fragile national economy. 

“The additional fee on mortgages being refinanced is ill-timed and misguided, and undermines the efforts our collective members are making to support homeowners in Tennessee,” said Colin Barrett, president and CEO of the Tennessee Bankers Association. 

“This action undermines the directive of aiding homeowners during this difficult and challenging time,” said Karley Bond, president of the Tennessee Mortgage Bankers Association. “We will use our voices in every way possible to protect Tennesseans and try to put a stop to this unjust and unwarranted action.” 

“We stand in support of all Tennesseans seeking to live out the American dream of home ownership, including those pursuing refinances as part of improving their lives and their families’ lives,” said Hagan Stone, 2020 president of Tennessee Realtors®. “This fee makes it more difficult for property owners who already face significant financial challenges in these unprecedented times.”


About Tennessee Bankers Association
The Tennessee Bankers Association is a not-for-profit organization representing Tennessee’s commercial banks and thrifts. The Association provides continuing education, develops and monitors state and federal legislative agendas, disseminates information on all facets of the financial services industry, and promotes the public image of financial institutions. Visit us at our website,

About Tennessee Mortgage Bankers Association
TNMBA is a not-for-profit organization dedicated to providing advocacy, professional development, networking and connecting, and membership development to the five local chapters across the state of Tennessee and its members. This association is dedicated to the preservation and improvement of the mortgage banking system. Members include residential and commercial Mortgage Bankers, Mortgage Brokers, and Wholesale Lenders, Savings & Loan Associations, Commercial Banks, Credit Unions, Government Agencies, Non-Profit Organizations, and companies that provide affiliated services to Mortgage Bankers.

About Tennessee Realtors®
Tennessee Realtors® is the state industry association representing more than 30,000 Realtor® members, in partnership with the National Association of Realtors® and with 20 local Realtor® associations throughout the Volunteer State. Visit us online at

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