Freddie Mac Announces Changes to LTV Requirements for Refinance Program

Freddie Mac announced yesterday changes to their Relief Refinance Mortgage Program, which includes the Home Affordable Refinance Program (HARP 2.0), that will align Loan To Value (LTV) ratio requirements for mortgages at or under 80% with mortgages whose LTVs are over 80%. What is more, “The alignment will involve eliminating many of the representation and warranty requirements that exist on the mortgages being refinanced.” The details for the program changes will be released by mid-September and will be effective for loans delivered after January 1, 2013.

Senior Vice President and Interim Head of Single Family at Freddie Mac, Paul Mullings, believes that once the changes to the program are implemented, that lenders will have more certainty and ease with helping Freddie Mac borrowers and the program has the potential of helping more than 1.3 million Freddie Mac borrowers.

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