RELIEF REFINANCE MORTGAGES – OPEN ACCESS (Freddie Mac 11/15/11 Bulletin)
Effective for Mortgages with loan applications dated on or after December 1, 2011 and Freddie Mac Settlement Dates on or after January 3, 2012
■ Adding a Borrower benefit provision allowing the Relief Refinance Mortgage to be originated for the purpose of reducing the monthly P&I payment
■ Extending the expiration date of this offering to December 31, 2013
■ Revising the requirement related to the Mortgage payment history for the Mortgage being refinanced
■ For Mortgages with LTV ratios less than or equal to 80%, requiring maximum TLTV and HTLTV ratios of 105%
■ For Mortgages with LTV ratios less than or equal to 80%, allowing for a more flexible use of refinance proceeds
Effective for Mortgages with loan applications dated on or after December 1, 2011 and Freddie Mac Settlement Dates on or after March 15, 2012
■ We are removing the maximum LTV ratio of 125% for fixed-rate Mortgages sold under fixed-rate Cash (the 105% maximum LTV ratio for ARMs will remain).
■ We are also permitting the use of HVE to determine property value for certain 1- to 2-unit properties.
Effective for Mortgages with loan applications dated on or after December 1, 2011 and Freddie Mac Settlement Dates on or after June 1, 2012
■ We are removing the maximum LTV ratio of 125% for fixed-rate Mortgages sold under fixed-rate Guarantor (the 105% maximum LTV ratio for ARMs will remain). The Guide will be updated with a future Bulletin to reflect this change.
Changes to Loan Prospector®
On or before March 15, 2012, Loan Prospector will be updated to recognize Relief Refinance Mortgages – Open Access with LTV ratios greater than 125%. Until Loan Prospector is updated, Sellers cannot complete loan assessments for Relief Refinance Mortgages – Open Access with LTV ratios greater than 125%. Loan Prospector has not been updated to reflect the maximum 105% TLTV and HTLTV ratios for Relief Refinance Mortgages – Open Access with LTV ratios less than or equal to 80%. Sellers must ensure that this requirement is manually applied. HVE values returned on Loan Prospector Feedback Certificates can be used to determine property value for Relief Refinance Mortgages – Open Access only for Loan Prospector submissions on or after March 15, 2012.
Paul Wickstrom
