Freddie Mac To Clear The Way For Easier Refinance
August 1, 2012
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Freddie Mac, a government backed entity that finances loans for
borrowers nationwide, announced today that it would be realigning
the Relief Refinance Mortgage Program (RRMP) to ease the process of
for borrowers with a loan-to-value ratio (LTV) on their mortgages
below 80 percent.
As part of the federal government's Home Affordable Refinance
Program (HARP 2.0), which was recently revamped to help
borrowers with LTV exceeding 125 percent on their mortgages, the
RRMP currently has different qualifying restrictions for refinance
on loans with LTVs on either side of the 80 percent mark.
The new plan will make requirements for loans to refinance with
any amount of LTV. In order to do this, Freddie Mac will remove
many of a borrower's warranty responsibilities on their original
loans, as well as remove most of the lender's selling
According to a press release from Freddie Mac, full details of
the changes to RRMP will be made publicly available by
mid-September, with full enactment of the revised program possible
by January of next year.
Currently, the average interest rates on 30-year and 15-year
fixed-rate loans are at all time lows, reports the Mortgage Bankers
Association (MBA) in their weekly survey. The MBA also reported
that applications for mortgage refinance reached three-year highs
last week, up 0.2 percent from the week before.
Homeowners who would like to learn more about the current
climate for mortgage refinance and how they can potentially lower
their monthly payments, they should contact a mortgage professional
at New Penn Financial.
Government Considers New Mortgage Refinance Program
What To Consider When Refinancing More Than Once