Freddie Mac Open Access Refinance

The Freddie Mac Relief Refinance Mortgage – Open Access (Freddie Mac to Freddie Mac refinance) supports the federal Making Home Affordable Program by helping borrowers who are making timely mortgage payments but have been unable to refinance due to declining property values. With this offering, you can now refinance, even if we’re not currently servicing the mortgage. Although the program allows up to 125% loan to value, (similar to Fannie Mae’s Refi Plus), most (but not all) lenders are capping this program at 105% loan to value.

The mortgage being refinanced must:

• Be a first-lien, conventional mortgage currently owned or securitized by Freddie Mac.
• Have a Freddie Mac settlement date on or before May 31, 2009.
• Be seasoned for at least three months.

To check and see if your current mortgage is a Freddie Mac loan check out Freddie Mac’s Loan Lookup.

Freddie Mac Open Access additional information:

The program is limited to Rate and Term refinances and the proceeds may be used only to:

• Pay off the first Mortgage (amount including only the unpaid principal balance and interest accrued through the date the Mortgage being refinanced is paid off). (The result may be rounded up to the nearest thousand.)
• Pay the lesser of 4% of the current unpaid principal balance (UPB) of the Mortgage being refinanced or $5,000 in related Closing Costs, Financing Costs and Prepaids/Escrows
• Funds available as a result of the rounding must be applied as a principal curtailment to the new refinance mortgage and/or disbursed as cash to the borrower not to exceed $250.00
• The proceeds may not be used to pay off or pay down any junior liens

Three (3) months seasoning of the existing mortgage is required, as determined by length of time from the Note date to application date.

Must demonstrate that Relief Refinance Mortgage – Open Access improves borrower’s position as follows:

• Reducing interest rate
• Reducing amortization period
• Replacing ARM, IO or Balloon Product with a fully amortizing Fixed Rate Product

Properties that have been listed for sale are eligible with the following restrictions:

• Property has been taken off the market on or before the application date.
• Borrower must sign an affidavit confirming occupancy, and that the home was not listed at time of application and is not listed at the time of funding.

Relief Refinance Mortgages – Open Access must close on or after October 1, 2009, and on or before December 31, 2013. Additionally, these mortgages must have Freddie Mac settlement dates on or after October 1, 2009.

For additional information see our HARP 2.0 page or to see if you qualify, contact me below or apply online.