Updated-Additional Fannie Mae “Adverse Market” delivery fee

Submitted by Anonymous on Wed, 01/13/2010 - 12:38pm

Memo Subject:

Memo Date:

10/09/2009 (All day)

Memo No.:

08-19

On October 2, 2008, Fannie Mae released Announcement 08-24 which removes the additional 25 bps (0.25%) increase to the “Adverse Market Delivery Fee” (“fee”) that was announced on August 11, 2008 (FNMA Announcement 08-18), with an effective date of November 1, 2008. The fee reduction applies to all FNMA Conventional Loans that are originated under the Mortgage Revenue Bond (MRB) program, including Mortgage$aver and HERO First.

The Lender is still required to charge the original 25bps (0.25%) Adverse Market Fee that was assessed on December 5, 2007 (FNMA Announcement 07-21).

Any Loan Level Price Adjustments (LLPA) previously announced are still required.

Effective immediately, Lenders are required to waive this additional Adverse Market Fee on all Conventional loans that have not yet closed.
On Conventional loans that have been closed , but not yet sold to the Master Servicer, the Lender must refund the additional 25bps (0.25%) Adverse Market Fee to the borrower. The Master Servicer will not purchase a loan that has a total Adverse Market Fee greater then 25bps (0.25%).
On Conventional loans that were sold to the Master Servicer with a Total Adverse Market Fee of 50bps (0.50%) charged to the borrower, the additional 25bps (0.25%) will be refunded to the borrower by the Master Servicer.