Freddie Mac Revises Relief Refinance Mortgage Program

Mortgage servicer Freddie Mac has announced several modifications to Relief Refinance Mortgage, a recently launched program aimed at helping non-delinquent borrowers stay current by refinancing to more affordable terms.

The changes will allow borrowers with Freddie Mac-owned to refinance with any other Freddie Mac-backed lender. Before the change, borrowers could only work with their current servicers, which greatly limited their options.

For borrowers who choose to work with a different servicer, the lender will have to re-underwrite the mortgage. If the borrower chooses to stay with his current lender, the mortgage does not have to be re-underwritten.

The company will also increase the value of the closing costs that can be bundled with the refinance, which is expected to draw in more borrowers. Under the new policy, up to $5,000 or 4% of the refinance amount, whichever is lesser, can be rolled into the new mortgage.

Freddie Mac Executive Vice President Don Bisenius says the move was a response to the public’s call for more refinancing options. The move is aimed at bolstering President Obama’s Making Home Affordable program, which has seen considerable success in recent months.

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