Yesterday, the Federal Housing Finance Agency (FHFA) announced a series of changes in an effort to attract more eligible borrowers who will benefit from refinancing their home mortgage. I wanted to make a list of some bullet points highlighting the details.
Highlights
- Removing current 125% loan to value ceiling for fixed-rate mortgages backed by Fannie Mae or Freddie Mac. This means there is no ceiling for how underwater a borrower is on their mortgage.
- Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie or Freddie. (This refers to title insurance.)
- Eliminating the need for an appraisal where there is an automated valuation model (technology driven report that deciphers estimated value in seconds).
Eligibility
- Existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before 5/31/2009
- Homeowner must be current on their mortgage payment with no late payments in the past 6 months and no more than 1 late payment in the past 12 months
- You can find out if your loan is securitized by Fannie or Freddie by going to http://www.FannieMae.com/loanlookup/ or https://ww3.FreddieMac.com/corporate/
These changes go into effect on November 15th of this year. If you, or folks you know have a mortgage and they don’t have 20% equity or are even underwater and not sure they can refinance please forward this email along. Congress estimates there are about 4 million homeowners in the country who can benefit from these changes.
Thanks and have a wonderful day.
Coutesy of
Timothy P. O’Brien
Zipfel Mortgage Group| Mortgage Planner
3440 Edwards Avenue
Cincinnati, OH 45208
Fax:866-904-3470
Email: tim@zipfelmortgage.com
Website: http://www.zipfelmortgage.com/
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