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Retain your existing ARM borrowers with Streamlined Refinance Mortgage options
Our Office of the Chief Economist predicts approximately $500 billion in ARMs are scheduled to reset this year. In addition, according to our May 2007 Economic Outlook Report, Refinancings: Down But Not (Cashed) Out
[PDF 392K], new ARM originations declined 28 percent from one year ago to 11 percent in the first quarter of 2007.
With these market conditions and trends, consider Freddie Mac's enhanced Streamlined Refinance Mortgages for your existing ARM borrowers who are looking to refinance to a fixed-rate mortgage and realize a “win-win” solution for your business and your borrowers.
With Streamlined Refinance Mortgages, your current borrowers can conveniently refinance from their ARM to the stability of a fixed-rate mortgage. Offering your borrowers Streamlined Refinance Mortgage options will let you realize new possibilities for your business as you:
- Retain existing borrowers looking to refinance from an ARM to the stability of a fixed-rate mortgage. As interest rates on ARMs rise, retain existing customers by offering them an opportunity to refinance their current home loan using a Streamlined Refinance Mortgage option with a 15-, 20-, 30- or 40-year fixed rate mortgage. With these fixed-rate options, your borrower can choose new mortgage terms based on their short-term or long-term financial goals.
- Give your borrowers more ways to realize cost savings. Allow current borrowers to refinance and reduce their mortgage payment in the midst of a changing market. With Streamlined Refinance Mortgages, borrowers can pay off a purchase money junior lien – used to purchase their home – with mortgage proceeds from the refinancing.
- Improve loan process efficiencies using Loan Prospector®. Whether you take advantage of Loan Prospector automated underwriting technology to assess Streamlined Refinance Mortgages or choose to manually underwrite these loans, your production staff will spend less time completing the loan process. You'll save time during the origination process with our minimal documentation requirements, including no manual checks required for payment history on Loan Prospector Accept mortgages.
- Reduce your borrowers' upfront costs. Reduce or eliminate upfront costs your existing borrowers need to pay to refinance their mortgage when closing costs, financing costs, and prepaids/escrows are rolled into the refinance mortgage. Reduced fees include eliminating appraisal and inspection costs for your borrower if you can warrant that the value of your borrower's home has not declined from the value used to originate the mortgage being refinanced.
Find out more about our enhanced Streamlined Refinance Mortgages
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