On 8/25/2020 The FHFA announced a delay in the implementation of the Adverse Market Refinance Fee until December 1, 2020. As a result of this announcement, Gateway First Bank, Correspondent Lending, is eliminating the 50 basis point (.50) loan level price adjustment, effective today Thursday, August 27, 2020 for Best Effort and Mandatory Commitments. All Best Effort and Mandatory Commitments locked on or after August 13, 2020, where the 50 basis point fee was applied, will be adjusted and the LLPA removed; updated lock confirmations will be available on our GEMS portal.
In accordance with the implementation delay of the Adverse Market Refinance fee, all applicable refinance loans must be purchased by Gateway First Bank, Correspondent Lending on or before Friday, November 13th, 2020. Refinance loans that are not funded by this date, the Adverse Market Refinance Fee will be assessed, if the fee was not already applied at the time of initial lock.
Gateway will be reinstating the Adverse Market Refinance Fee on new commitments, as we get closer to the revised implementation date of December 1, 2020.
Please direct any questions to your Regional Sales Manager