We're applying for a Freddie Mac relief refinance.

[lumberjack_jeff]

For us, it seems like a really good program.

• No new appraisal (they'll use the old one)
  
• Very low fees - only .25% from Freddie Mac (potentially saving 2% or more)
  
• No income verification, and (I think) no credit check.
  
• 105% LTV cap
  
• If your current mortgage does not have PMI, then your refinance won't either - regardless of the current value of the home (subject to the 105% ltv cap)

The program officially begins April 1st. But you can apply now.

We're really excited. Our current mortgage is 6 1/2% (which we though was a pretty good deal) but yesterday's rate was 4 3/4% with no loan fee (at par).

I anticipate closing costs significantly less than $2000. :thumbsup:
http://www.freddiemac.com/sell/factsheets/relief_refi.html

[elleng]

1. No income check?

What are they doing???

[lumberjack_jeff]

5. The point is to help people stay in their homes.

They're less likely to default on a loan with better rate.

[elleng]

7. Its certain that a better rate is better.

But isn't it one of the criticisms of the chaos that the scum lenders were not asking for income checks?

[kristopher]

8. Read the guidelines at the link in the OP, it isn't what you seem to envision. nt

[lumberjack_jeff]

11. Exactly. The borrowers already have a loan... hence "refinance". n/t

[BlooInBloo]

2. Were you an Alt-A mortgage or something?

[lumberjack_jeff]

4. No, my mortgage is good, (35% ltv)

It's just a good opportunity for lower payments with low closing costs.

[originalpckelly]

3. WTF are they smoking?

Seriously, no credit checks or income verification? Not this shit again.

Well, I hope it all works out, you are after all already in the house.

[lumberjack_jeff]

6. It's a refi program for people who already have freddie mac loans. n/t

[Rage for Order]

9. Based on your link, it sounds like their streamline refinance program

This product was available through Fannie Mae, Freddie Mac, and FHA since before the housing market collapsed.

http://www.freddiemac.com/sell/factsheets/pdf/streamlined_refinance_mortgage_387.pdf

The program the OP links to doesn't allow you to take any cash out (well $2,000 or 2% of the loan amount, whichever is less). The borrower also must realize at least one of the following 3 benefits:

* Reduction in the interest rate of the first lien mortgage,
* Replacement of an ARM, Initial Interest® Mortgage (or any mortgage with an interest-only period) or a balloon/reset mortgage with a fixed-rate, fully amortizing mortgage, or
* Reduction in the amortization term of the first lien mortgage.

If Freddie Mac already holds the note they aren't taking on any additional risk. In fact, since the loan has to show a tangible benefit to the borrower it puts the borrower in a better position to pay the mortgage. This is a good program for those who qualify.

[lumberjack_jeff]

12. I was told by the banker (whom I trust) that this is superior to the current streamline refi

because of much lower closing costs.

[Rage for Order]

14. That may be the case

Sounds like a new program, probably part of the mortgage relief that was recently passed. It's definitely not a scam. I'm glad to see this program is reaching homeowners, because the Hope 4 Homeowners program that was passed last year was a complete failure. I think nationwide there were 4 or 5 loans done under the H4H program, and I'm not exaggerating.

[Oregone]

10. I can't. My home isn't worth less than my mortgage

I researched so I bought within my budget, made a down payment, paid off some mortgage (15% in 3 years) and took no equity out for the years I owned. To top it off, I used a hammer and nails to make my house value up.

People like me deserve no help I guess.

More likely candidates are those that bought too high in bubbles, with no substantial down payment and no ability to improve their homes, paying the minimum on their loans. Flame away.

[lumberjack_jeff]

15. Are you being sarcastic?

If you don't want to refinance, power to you.

I built my house with mostly my own cash. We did take a construction loan for 35% of the value. It was rolled into a freddie mac mortgage. This program is a better way to refinance for a lower rate since I don't need or want any additional cash.

The most likely candidates are those who have freddie mac mortgages who don't want cash back and either can't or don't want to pay huge closing costs. Further, it might also be a lifeline for those who have had their economic circumstances change since they bought their house.

I'm trying to help here. This is a beneficial part of the stimulus bill. I don't understand the vitriol.

[Oregone]

18. "If you don't want to refinance" - I want to but I can't under Obama's program!

The one requirement I miss is that my home mortgage is less than the value of my home. Not everyone bought above their means in bubbles. But EVERYONE is susceptible to job loss in a shitty economy. My home has been for sale for 2 fucking years. Id love to refinance but Im not upside down. This program isn't for people like me. We don't meet the requirements of being upside down (aka "heads in asses" -- again, flame away).

[Rage for Order]

19. The fact that you're not upside down is not an impediment under this program

Being upside down by more than 105% of the value of your home would be an impediment. From the link in the OP:

The maximum LTV ratio for Relief Refinance Mortgages must not exceed 105 percent.

and

For an LTV ratio greater than 80%:... the fact that this guideline is in there means that loans that aren't underwater can be refinanced using this program. Check with your local trusted mortgage lender to see which programs you qualify for.

[Oregone]

20. Ahh, this is different from the federal .gov program I saw last night

Which covered both Freddie Mac and Fannie Mae (I forgot which one owned mine). It was for upside downers only.

Ill look into this. My LTV ratio is 30 to 50%. I still have almost $1000 bucks a month due, which isn't easy if I lost my job.

[Oregone]

21. Hm. Im Fannie Mae owned....maybe they have something similar

But wait...does it matter for primary homes as long as they would of met requirements of Freddie Mac at time of financing? Just go through a local lender? Kind of confusing. Maybe I can ram this in.

Another problem is that I just became self employed again at the end of last year (haven't filed as of yet). So thats a bit of a hang up but I have former tax returns for proof of prior years. Maybe I can hop on the refi train.


On edit: Called Fannie Mae Refi Plus

[lumberjack_jeff]

22. You should read the link in the op. If your mortgage is Freddie Mac, you should qualify. n/t

[notadmblnd]

13. This Freddie Mac,only refinance current customers?

My mortgage is a subprime almost 12% and it was with Houshold finance which sold to beneficial which is HSBC. Can I apply to Freddie Mac for a refi?

[lumberjack_jeff]

16. I don't think so, but Fannie Mae has an analagous program. n/t

[Rage for Order]

17. You can, but maybe not using the loan program referenced in the OP

To use the program in the OP, your loan has to be currently owned by Freddie Mac. From the link in the OP:

The Mortgage being refinanced must:
o Be a first-lien, conventional mortgage currently owned or securitized by Freddie Mac.
o Have met Freddie Mac eligibility requirements on the note date as stated in the Seller’s purchase documents.
o Have a note date no less than three months prior to the new refinance mortgage.
* Seller or an affiliate of the Seller originating the new mortgage must be the Servicer of the mortgage being refinanced.
* The Seller/Servicer, as the originator of the new refinance mortgage, must have the mortgage file for the mortgage being refinanced and must deliver the 9-digit Freddie Mac loan number for the mortgage being refinanced.

However, you might be able to do a Freddie Mac streamline refinance even if Freddie doesn't own your loan, provided you can qualify:

Minimum Indicator Score of 620 for Freddie Mac-owned Streamlined Refinance Mortgages
Minimum Indicator Score of 680 for Streamlined Refinance Mortgages where Freddie Mac does not currently own the mortgage being refinanced

Additional requirements for Streamlined Refinance Mortgages not currently owned by Freddie Mac:

Verbal verification of employment is required, or the most recent pay stub or salary voucher.

For a self-employed borrower, signed pages one and two of the borrower’s most recent (one year) federal income tax return and signed IRS form 8821/4506 (or alternate form acceptable to the IRS that authorizes the release of comparable information) for the most recent year.

For manually underwritten mortgages, the minimum Indicator Score is 680, and the mortgage payment history on the mortgage being refinanced indicates that the mortgage has not been delinquent 30 or more days in the most recent 12 months.

A borrower may be omitted due to death or divorce if the Seller obtains and retains documentation of the death or divorce in the mortgage file; and obtains evidence the remaining borrower has been making the mortgage payments, including payments for any secondary financing, for the last 12 months.

Additional requirements for Freddie Mac-owned Streamlined Refinance Mortgages:

No income verification is required. For Loan Prospector mortgages, enter the income reported on the borrower’s new loan application.

For manually underwritten mortgages, the minimum Indicator Score is 620, and the mortgage payment history indicates the mortgage being refinanced has been current for the most recent 90 days and in the most recent 12 months has not been delinquent 30 days more than once, or delinquent 60 or more days ever.

Must be originated for one of the following reasons:

A reduction in the interest rate of the First Lien Mortgage.
A reduction in the amortization term of the First Lien Mortgage.
To replace an adjustable-rate mortgage (ARM) or a balloon/reset Mortgage with a fixed-rate mortgage.