FHFA announces new flexibilities for low-income refi programs for Fannie Mae and Freddie Mac
According to Freddie Mac, borrowers will benefit from a lower interest rate and lower mortgage payments, and those who haven’t refinanced can save anywhere from $ 100 to $ 250 per month. The FHFA has also said it will require GSEs to change other requirements to address operational frictions for lenders.
âWe introduced RefiNow earlier this year as an option for low-income homeowners who often lack refinancing options to lower their monthly mortgage payments and increase their potential monthly savings. The improvementsâ¦ help extend the reach of RefiNow to other creditworthy homeowners, enabling fair and sustainable access to homeownership, âsaid Fannie Mae Single-Family Head Malloy Evans.
âFreddie Mac is taking action to ensure more deserving homeowners can take advantage of today’s low mortgage rate environment through refinancing,â said Donna Corley, Executive Vice President and Head of Freddie Mac Single -Family. âBy working with our lending clients and the Federal Housing Finance Agency, we are now able to help even more low-income households reduce their interest rates and monthly mortgage payments thanks to our Refi solution. Possible. Our priority is to create more equitable opportunities that responsibly support sustainable home ownership.
In addition to the expanded eligibility, Fannie and Freddie will be incorporating desktop assessments into their sales guides for new purchase loans starting in early 2022. According to the FHFA, this decision is the result of an extensive review of data collected from the use of loan flexibilities. , as well as comments received from the Request for Comments (RFI) and the public listening session on evaluation policies, practices and processes.
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