Freddie Mac modifies Relief Refinance Mortgage program
Freddie Mac recently announced several changes to its refinance offering under its Relief Refinance Mortgage program, designed to assist borrowers who are current on their mortgage payments but would benefit from refinancing into mortgages with terms that better position them for long-term homeownership.
Borrowers now will be able to refinance a Freddie Mac-owned or guaranteed mortgage with any lender affiliated with Freddie Mac, rather than the lender currently servicing their mortgage. Freddie Mac also is increasing the amount of closing costs that can be rolled into the new refinance mortgage.
Borrowers can continue to work with their existing servicer to refinance their mortgage; in most cases the current servicer will not have to re-underwrite the borrower. 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.