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GSE Adverse Market Fee

As announced by the FHFA on August 25th, FNMA and FHLMC delayed the implementation date of their Adverse Market Refinance Fee until December 1, 2020.  Fairway will phase in the application of the 50 bps Adverse Market Fee as an LLPA for all FNMA and FHLMC refinances using the schedule below to comply with the new delivery date:  

  • 45-day locks beginning September 28, 2020
  • 30-day locks beginning October 12, 2020
  • 15-day locks beginning October 26, 2020 

Any lock that does NOT contain the 50 bps Adverse Market Fee and needs to be extended past November 9, 2020 will be subject to the 50 bps LLPA at time of extension. 

Also, as included in the FHFA announcement, the 50 bps Adverse Market Fee will not apply to the following scenarios / loan types:


  • Loan amounts less than $125,000
  • Single-Closing construction-to-permanent loans
  • HomeReady and HomePossible



GSE Adverse Market Fee | Client Announcement 2020-09-15