U.S. Senator Joni Ernst (R-IA) is calling on government-sponsored enterprises Fannie Mae and Freddie Mac to reconsider a newly-proposed fee that will be placed on homeowners who refinance their mortgages beginning in September. In a letter to the Federal Housing Finance Agency (FHFA) Director, Ernst discusses the harmful impact the new fee would have on many Iowa homeowners amid the current financial crisis. As a result of this fee, refinancing a home could cost Iowans an additional $1,400 on average.
In her letter, Ernst writes, “The COVID-19 pandemic has brought unprecedented financial hardship on homeowners across my home state of Iowa and all across the country. Many folks are looking to secure monthly savings by taking advantage of historically low-interest rates and refinancing their mortgage.”
Ernst continues, “At a time when so many homeowners are struggling to pay monthly bills and put food on the table, this fee would punish families who are pursuing much-needed financial relief during a time of crisis… Shortly after it was announced, a White House spokesperson raised serious concerns with the move, noting that ‘it appears only to help Fannie and Freddie and not the American consumer.’ I agree with this assessment, and I urge you to prioritize consumers by directing Fannie Mae and Freddie Mac to rescind this fee immediately.”