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Upcoming Relief Refinance Mortgage Changes Will Provide You More Opportunities to Refinance More Borrowers

July 31, 2012

If you originate Freddie Mac Relief Refinance MortgagesSM, soon you'll have additional opportunities to assist more borrowers to take advantage of today's historically low mortgage rates. We are making changes to our Relief Refinance Mortgage offering that will align the requirements for mortgages with loan-to-value (LTV) ratios less than or equal to 80 percent with those for loans with LTV ratios greater than 80 percent. Importantly, the alignment will eliminate many lender representations and warranties on the original loans being refinanced, regardless of the borrower's LTV ratio.

The enhancements will build on the success of the Home Affordable Refinance program (HARP) and our Relief Refinance Mortgage offering. In response to your feedback, we are also further evaluating the Relief Refinance Mortgages – Open Access offering in an effort to maximize the program’s reach to eligible borrowers and assist lenders in managing capacity.

The revised requirements for our Relief Refinance Mortgage offering are scheduled to be published in a mid-September Single-Family Seller/Servicer Guide (Guide) Bulletin at which time you may begin accepting applications for loans to be delivered to Freddie Mac on or after January 1, 2013*. While we finalize our requirements, we encourage you to review today's press release.

*Please refer to Guide Bulletin 2012-19 for the actual effective dates and revised requirements.

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