Mortgage giants Fannie Mae and Freddie Mac just announced that they are raising fees for lenders on all mortgage refinances. The change is designed to shield the two from the additional risk brought on by the coronavirus pandemic.

Consumers will have to pay more to refinance their mortgages after Fannie Mae and Freddie Mac announced that they are raising fees for lenders on the loans.

The change is designed to shield the two entities from the additional risk brought on by the coronavirus pandemic. In a letter to lenders, Fannie Mae specifically cited “market and economic uncertainty resulting in higher risk and costs.”

The price adjustment adds 0.5% of the loan amount to the consumer’s cost. That amounts to $1,400 on the average mortgage originated today. It will begin in September, which means it will basically apply to all refinances that aren’t already in process.

The move was met with strong criticism from the mortgage industry, seen as a slap in the face of the one sector of the economy that has been thriving during the pandemic.

“This announcement is bad for our nation’s homeowners and the nascent economic recovery,” wrote Bob Broeksmit, CEO of the Mortgage Bankers Association, in a statement. “Requiring Fannie Mae and Freddie Mac to charge a 0.5% fee on refinance mortgages they purchase will raise interest rates on families trying to make ends meet in these challenging times.”

Mortgage refinances have been surging for months, as interest rates continue to set record lows almost weekly.