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Freddie Mac Unveils its HARP Replacement Loan
Tuesday, September 12, 2017
Last year Freddie Mac and Fannie Mae
announced that their implementation of the Home Affordable Refinance Program
(HARP) would continue through the end of 2018 and that both were developing a
new high loan-to-value (LTV) refinance offering to be available once HARP did
expire. Freddie Mac has now provided
information on its new high LTV refinancing vehicle that will be effective for
mortgages with applications received on or after November 1, 2018.
The new product, branded as the Enhanced
Relief Refinance Mortgage, will provide refinance opportunities to borrowers
with existing Freddie Mac mortgages but who cannot utilize the Freddie Mac "no
cash-out" refinance because the LTV of the new loan would exceed that program's
maximum limit. There is no maximum LTV
for a fixed rate Enhanced Relief Mortgage but there is a maximum LTV of 105
percent for an adjustable rate (ARM) version.
Refinancing into an ARM will only be allowed if the existing mortgage is
also an ARM.
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