Freddie Mac will cut its streamlined refinance program for mortgages settled on or after May 1, 2011. This, say analysts at Bank of America (BAC) Merrill Lynch was the only government-sponsored enterprise streamline refinance option left after the Home Affordable Refinance Program expired in March 2009 for Fannie Mae and May 2009 for Freddie. The program allowed qualifying mortgages, which had never been 30 days delinquent more than once in the previous year, among other qualifications, to have the interest rate and the amortization term on the first-lien reduced. Also, Freddie could replace an adjustable-rate mortgage with a fixed-rate one. “We believe that Freddie’s owned streamlined refinance program has had a meaningful impact on Freddie speeds in the 2009 and 2010 vintages,” BofAML analysts said. They added that without the program, there will be slower speeds and longer refi lag for Freddie pools issued in those years, and that these speeds will begin to match those at Fannie Mae. Write to Jon Prior. Follow him on Twitter: @JonAPrior
Freddie Mac eliminates streamlined mortgage refinance program
Most Popular Articles
Latest Articles
Spring housing market gets more inventory
We’ve now had back-to-back weeks of healthy housing inventory growth, making spring 2024 much healthier than spring 2023.
-
The best real estate podcasts for agents and brokers in 2024
-
Home sellers saw their profits shrink in the first quarter: Attom
-
If reelected, Trump could seek greater control over Federal Reserve
-
Acra CEO Keith Lind on staying the course amid choppy waters in non-QM
-
HUD walks back some proposed changes to HECM for Purchase program