A contentious new fee on U.S. mortgage refinancings has been delayed until Dec. 1, according to the regulator overseeing mortgage giants Fannie Mae and Freddie Mac, Reuters reported. The 0.5 percent fee, aimed at recouping potentially billions of dollars in losses created by the coronavirus pandemic, was originally set to take effect on Sept. 1. The regulator, the Federal Housing Finance Agency, also said the fee would not apply to mortgages worth less than $125,000. Fannie and Freddie had announced the fee earlier this month amid a boom in refinancings as borrowers looked to take advantage of record-low interest rates. But the new fee was met with swift criticism by the banking industry, consumer groups and members of Congress, who were wary of what the new cost could mean for struggling borrowers and the entire housing market during such a tumultuous economic time.
