NEW LLPA ON ALL REFINANCE LOANS WITH FANNIE & FREDDIE August 13, 2020

Consumer Alert: All Fannie Mae & Freddie Mac Refinances (Not Purchases)  are going to be charged 50 basis points across the board on every loan effective immediately. All loans that are currently locked, lenders are paying this LLPA (Loan Level Pricing Adjustment). All loans that are not locked, borrowers will pay. What does this mean? A $400K loan will have a new $2000 fee to the borrower. They are saying that this is a result of an adverse market due to Covid 19. But to me this looks like Freddie and Fannie are trying to protect themselves with the intention of going back to being private .Good news though, rates are still low and millions of American’s are refinancing their loans in the 2’s still!

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