In a year so far filled with a pandemic, a derecho and drought as well as other anomalies from the environmental and insect worlds, one of the few positives to come out of all of this is a drop in interest rates. However, government-sponsored home loan agencies, Freddie Mac and Fannie Mae, are proposing a new fee in September for homeowners wishing to take advantage of lower rates and refinance their mortgages. U.S. Senator, Joni Ernst, is urging them to reconsider the application of such a fee and to recognize the harmful impact it could have on Iowa homeowners who could be in the grips of a financial crisis. The fee could cost homeowners an additional $1,400 on average. In a letter to the organizations Ernst says, “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,” Ernst says. She urges them to prioritize consumers by rescinding the fee.
