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Freddie
Mac, 6-5-09
Changes Provide Broader
Availability for Borrowers, More Flexibility
for Closing Costs
In a move aimed at
furthering the success of President Obama’s
Making Home Affordable Program, Freddie Mac
(NYSE: FRE) today announced several changes to
its refinance offering under the program.
Freddie Mac’s Relief Refinance Mortgage is
designed to assist borrowers who are current on
their mortgage payments but who would benefit
from refinancing into mortgages with terms that
better position them for long-term
homeownership.
Once these changes are
available, borrowers will be able to refinance
a Freddie Mac-owned or guaranteed mortgage with
any lender affiliated with Freddie Mac.
Previously, borrowers had to work with the
lender who currently services their mortgage.
In addition, to help reach more borrowers,
Freddie Mac is increasing the amount of closing
costs that can be rolled into the new refinance
mortgage.
“We are responding to
consumers’ desires to have more refinancing
options,” said Freddie Mac Executive Vice
President Don Bisenius. “As an added benefit,
we are expanding the program and providing
greater flexibility in financing closing costs.
Freddie Mac is committed to doing everything we
can to bring the benefits of the
Administration’s Making Home Affordable program
to as many borrowers as possible.”
Working With Existing
Mortgage Servicer to
Refinance
Borrowers can continue to
work with their existing servicer to refinance
their mortgage. In the vast majority of these
cases, the current servicer will not have to
re-underwrite the borrower. If the borrower
chooses to work with another Freddie
Mac-affiliated lender, the mortgage will need
to be re-underwritten.
Freddie Mac will allow the
lesser of 4 percent of the new refinance
mortgage amount or $5,000 of closing costs,
financing costs and prepaids/escrows to be
rolled into the new refinance mortgage.
Freddie Mac’s standard
postsettlement delivery fees, up to a maximum
of 2 percent, will apply to the Relief
Refinance Program.
Borrowers should visit
https://www.freddiemac.com/corporate/
and complete the online form to determine if
Freddie Mac owns their mortgage.
Freddie Mac was established
by Congress in 1970 to provide liquidity,
stability and affordability to the nation's
residential mortgage markets. Freddie Mac
supports communities across the nation by
providing mortgage capital to lenders. Over the
years, Freddie Mac has made home possible for
one in six homebuyers and more than five
million renters.
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