Freddie Mac to Finally Allow Brokers to Offer Stimulus Refi’s

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I’ve been busy helping people obtain sub 5% rates on Economic Stimulus Refi’s which have saved clients hundreds of dollars a month from their previous rate, sometimes without appraisals, and when no other opportunites existed in our tight Lending industry.  But up until now Brokers have only been allowed to help clients whose loans are owned by Fannie Mae.  Now Freddie Mac is finally realizing that Brokers play an important role in our Nation’s housing recovery process by offering and informing our clients of the best options available to them.  Freddie Mac will have their “Open Access” programs open to Brokers quite soon so be prepared and make sure you get your file started so that you can LOCK in the lowest rates when they come back down again!

Here is a preview of the upcoming changes for Freddie Mac’s Making Home Affordable refinance program;

Previewing Requirements for Relief Refinance Mortgage – Open Access To make Relief Refinance Mortgages more broadly available in the market and give borrowers more choices when refinancing, we are previewing the new Freddie Mac Relief Refinance Mortgage – Open Access. We are in the process of finalizing our requirements for this offering and will be communicating detailed origination requirements and an effective date for Freddie Mac settlements in a future Guide Bulletin. The Relief Refinance Mortgage – Open Access will permit LTV ratios up to 105 percent, unlimited TLTV/HTLTV ratios, and relief from standard mortgage insurance requirements. All Freddie Mac Seller/Servicers, regardless of whether they are the Servicer of record for the mortgage being refinanced, will be eligible for the Relief Refinance – Open Access option. The Relief Refinance Mortgage – Open Access will require full underwriting and the new refinance mortgage must meet all of Freddie Mac’s eligibility, underwriting and documentation requirements. Additional requirements for the Relief Refinance Mortgage – Open Access will include: Allowing the new refinance mortgage to be assessed through Loan Prospector (Freddie’s Automated System) Requiring a full interior/exterior appraisal for the new refinance mortgage. Please note that use of Home Value Explorer® point value estimates will not be permitted with the new Relief Refinance Mortgage – Open Access. Allowing 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. Cash back to the borrower may not exceed $250.

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