Guide Bulletin 2012-1 Provides Added Flexibility for Relief Refinance Mortgages
January 5, 2012
To provide you with greater flexibility when refinancing mortgages for borrowers who have greater equity in their homes, Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-1 revises our Freddie Mac Relief Refinance MortgageSM requirements for mortgages with loan-to-value (LTV) ratios less than or equal to 80 percent.
Originate & Underwrite
Effective for Freddie Mac settlement dates on or after January 5, 2012, we are:
- Eliminating the minimum Indicator Score requirement of 620 for Relief Refinance Mortgages – Same Servicer with LTV ratios less than or equal to 80 percent, provided the principal and interest payment does not increase by more than 20 percent.
- Eliminating the maximum total LTV (TLTV) and Home Equity Line of Credit TLTV (HTLTV) ratio requirement of 105 percent for Relief Refinance Mortgages – Same Servicer and Relief Refinance Mortgages – Open Access with LTV ratios of less than or equal to 80 percent.
All other recently announced revisions to our Relief Refinance Mortgage requirements and related system updates continue to apply. See Guide Bulletin 2011-22 for complete details on these previously announced changes.
Additional Guide Bulletin Updates
It is important that you carefully review Guide Bulletin 2012-1 for additional requirement changes that we are announcing today. These include updates to Guide Exhibit 32, Terms Relating to the Use of Data Generated by Home Value Explorer®, and our requirements related to eligibility of Relief Refinance Mortgages - Open Access with existing mortgage insurance coverage provided by Republic Mortgage Insurance Company (RMIC) and RMIC of North Carolina.
Get More Information
Read Guide Bulletin 2012-1