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Home Affordable Refinance – New Refinance Options for Existing Fannie Mae Loans

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Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I saw FNMA Announcement 9-04 this AM while visiting their site.

From page 1

The Making Home Affordable program announced by the Department of the Treasury on March 4, 2009, includes a new initiative – Home Affordable Refinance – to provide refinance opportunities to borrowers with mortgages held or guaranteed by Fannie Mae. This initiative is for borrowers who have demonstrated an acceptable payment history on their mortgage but due to a decline in home prices or where mortgage insurance (MI) is not available, have been unable to refinance to obtain a lower payment or move to a more stable product. The Federal Housing Finance Agency (FHFA) has also provided greater flexibility to Fannie Mae to implement this refinance initiative.

Fannie Mae is announcing new refinance options to achieve the goals set out for this initiative and to incorporate additional flexibilities provided by FHFA. Importantly, the maximum loan-to-value (LTV) ratio for refinance mortgage loans under this initiative will be expanded to 105 percent, and MI requirements will be significantly relaxed to assist borrowers who have experienced home price declines.

This Announcement provides the details of the eligibility, pricing, and delivery requirements established to assist borrowers in refinancing into new loans with lower monthly payments or more sustainable mortgages in accordance with the Plan and FHFA’s guidance.

Fannie Mae is eliminating the existing streamlined refinance options and introducing two new refinance options available only for existing Fannie Mae loans. The following streamlined refinance products introduced in Announcement 07-24, Enhancements to Streamlined Refinance Products, and Announcement 08-03, Updates and Clarifications for Streamlined Refinance Products will no longer be eligible for delivery to Fannie Mae after July 31, 2009:

Streamlined Refinance – Option A (Fannie Mae to Fannie Mae refinance)
Streamlined Refinance – Option A Select (Fannie Mae to Fannie Mae refinance)
Streamlined Refinance – Option B (Government Sponsored Enterprise to Fannie Mae refinance)

Page 10 indicates either an interior or exterior appraisal must be used.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0904.pdf

FNMA Announcment 9-05 is for modifications and loan servicers.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0905.pdf
 
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