Freddie Mac Relief Refinance (HARP) Mortgage SM Mac Relief Refinance (HARP) Mortgage SM ... green check False – red X ... Freddie Mac Relief Refinance (HARP) Mortgage SM

© Freddie Mac 2013 1

Freddie Mac Relief Refinance (HARP) MortgageSM

Overview for Housing CounselorsMarch 6, 2013

Robin Stout Migala

Freddie Mac Housing & Community Outreach

© Freddie Mac 2013

� Home Affordable Refinance Program

(Freddie Mac Relief Refinance Mortgage)

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Implemented and further strengthened changes to our Freddie Mac Relief Refinance Mortgage offering in an effort

to attract more eligible borrowers who can benefit from refinancing their home

mortgages

http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1122.pdf

http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1219.pdf

http://www.freddiemac.com/singlefamily - then click on AllRegs


Home Affordable Refinance Program

General Eligibility for Relief Refinance (HARP) Mortgages

Self-Service Lookup tool: http://www.freddiemac.com

For Freddie Mac owned loans, the purchase date will be displayed on the

results page

� Freddie Mac initiatives for first lien, conventional mortgages that are currently owned by Freddie Mac, in whole or in part, or securitized by Freddie Mac

and

The mortgage being refinanced must have a Freddie Mac Settlement Date

on or before May 31, 2009.

© Freddie Mac 2013

Alternatives to Foreclosure Hierarchy

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64.6 - Evaluation hierarchy, borrower solicitation and communication

HARP

Freddie Mac Standard

Modification

HAMP Modification

HAFA Short Sale

HAFA Deed-in-Lieu

Foreclosure


Short Sale

Freddie Mac Deed-in-Lieu

Reinstatement and Relief Options

Freddie MacShort Payoff

HAFA Short Sale

Expired

December 31, 2012

Effective

November 1, 2012

HAFA Deed-in-Lieu


Deed-in-Lieu

Effective

March 1, 2013

© Freddie Mac 2013

Relief Refinance (HARP) Mortgage Requirements

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Same Servicer Open Access

Relief Refinance Mortgage

Guide Chapter

A24

Guide Chapter

B24

Relief Refinance Mortgages has been extended to December 31, 2013. To be eligible for refinancing under this offering, mortgages must have note dates on or before December 31, 2013

© Freddie Mac 2013

Home Affordable Refinance Program

Goals

� Help homeowners who are timely on their mortgage payments, but who are unable to refinance because they have little or no equity in their homes

� Enables homeowners to obtain a beneficial refinance, despite a decrease in home values

� Reduce monthly payments, where possible, for homeowners in order to help reduce foreclosures and stabilize communities

� Be an option for eligible homeowners to get into mortgages with more stable, more affordable payments

Expiration date of the program extendedto December 31, 2013.

*The Freddie Mac Relief Refinance MortgageSM includes Freddie Mac’s

implementation of HARP solutions.

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© Freddie Mac 2013


Two Refinance Options:

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Homeowner gets refinancing from current participating lender (to whom they make their mortgage payment) and who already has their files and documents

Homeowner gets refinancing from any participating Freddie Mac-approved lender that is offering the Relief Refinance Mortgage

› Relief RefinanceMortgage-Same Servicer

› Relief RefinanceMortgage-Open Access

• Simplified borrower re-qualification steps, unless the principal and interest payment goes up more than 20 percent

• No new appraisal is required, in certain cases

• Qualification/underwriting is necessary through Loan Prospector® automated underwriting service

• No new appraisal is required, in certain cases

Eligibility requirements vary based on these two options and the loan-to-value ratio of the new mortgage resulting from the refinance.

© Freddie Mac 2013

Survey Question

� Q: The HARP program was established for all first lien mortgages regardless of investor.

True or false?

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� True – green check

� False – red X


Relief Refinance (HARP) Mortgage – What’s Changed

Option Revised Requirements Effective

Same Servicer and Open Access Reduced income/asset documentation and evaluation requirements when borrower is qualified for the new mortgage

Effective Now

Same Servicer Verify reserves equal to 12 monthly PITI payments instead of verifying source of income

Same Servicer When borrower is omitted from note, allow remaining borrowers to be re-qualified instead of providing evidence of past 12 months’ payments

Open Access No verification of condo project Freddie Mac eligibility (with certain exceptions)


Relief Refinance (HARP) Mortgage – What’s Changed

Option Revised Requirements Effective

Same Servicer and Open Access Aligned requirements for <80% LTV with those >80% LTV. Simplifies requirements

Application Received Date on and after

November 19, 2012

Same Servicer and Open Access Maximum allowable closing costs/prepaids lesser of 4% of UPB, or $5,000. Cash back limited to $250

Same Servicer New mortgage does not have to represent same occupancy as mortgage being refinanced

Same Servicer No verification of funds unless borrower is qualified for new mortgage (P&I increases more than 20%)

Same Servicer Aligned requirements for LTV ratios below, equal to, and above 80%. Seller is not required to represent and warrant that the mortgage being refinanced met Freddie Mac eligibility requirements, value, condition, and marketability of the Mortgaged Premises and certain fraud requirements


General Eligibility

� There is no maximum LTV/TLTV/HTLTV ratio for the existing mortgage

� If the new mortgage will be an ARM, the LTV is limited to 105%

� No delinquencies in the most recent six months. No more than one 30-day delinquency in the most recent 12 months on the mortgage being refinanced for Same Servicer.

� Manual underwriting only for Same Servicer

� Loan Prospector only for Open Access

� At least one borrower from the mortgage being refinanced must be retained



General Eligibility (cont’d)

� Credit score, documentation, and additional requirements apply if borrower’s P&I increases more than 20 percent for Same Servicer

� 1- to 4-unit primary residence, 1-unit second home, or a 1- to 4-unit investment property for all loans.

� The mortgage being refinanced and the Relief Refinance Mortgage – Same Servicer do not have to represent the same occupancy

� At least one borrower must have a verifiable source of income or have reserves equal to at least 12 monthly payments of PITI for Same Servicer.



The Relief Refinance Mortgage must result in one

of the following borrower benefits:

Borrower Benefit

Replacement of an adjustable-rate mortgage (ARM),

interest-only mortgage or a balloon/reset mortgage

with a fixed-rate, fully amortizing mortgage, or

A reduction in the interest rate of the first lien mortgage, or

A reduction in the amortization term of the

first lien mortgage

A reduction in the monthly principal and interest (P&I)

payment of the first lien mortgage, or

© Freddie Mac 2013

Survey Question

� Q: In order to be eligible for HARP, the borrower must not have been delinquent on the existing mortgage in the most recent six months. In addition, the borrower must not have more than two 30-day delinquencies in the most recent 12 months.

Is this correct?

�Yes – green check

�No – red X

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Features of the New Mortgage

� Mortgage insurance not required if existing mortgage has no mortgage insurance and LTV ratio is >80% on new mortgage.

� Proceeds may be used to pay off the first mortgage, pay related closing costs, financing costs, and prepaids/escrows, and disburse cash out to the borrower not to exceed $250.




Lender Participation

Some lenders may choose not to offer these mortgages, or they may choose not to implement all of the flexibility available through the HARP component of the changes. However, Relief Refinance Mortgages sold to Freddie Mac at a minimum must meet our requirements.

© Freddie Mac 2013

HARP Participating Lender List

� Provides greater visibility for HARP lenders

� Helps borrowers easily identify participating HARP lenders

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© Freddie Mac 2013

Bulletin 2012-24 – November 2, 2012 – Hurricane Sandy

� For Relief Refinance Mortgages secured by properties in areas affected by hurricanes or other natural disasters, a Freddie Mac Seller is not required to determine if an additional property inspection or a new appraisal is necessary after an initial property valuation has been relied on, provided that the mortgage meets the requirements of Guide Chapter 58, Property Insurance, and any private mortgage insurance company requirements.

� For mortgages that have application received dates on or before and note dates after November 1, 2012 and are secured by properties located in eligible Disaster Areas affected by Hurricane Sandy, the following temporaryrequirements apply:

» Property valuation documentation, including the estimate from Home Value Explorer® (HVE) or the new appraisal, as applicable, must be dated no more than 180 days before the note date.

» Any required underwriting documentation including but not limited to, Loan Prospector® Feedback Certificates, credit reports, verifications of income, employment and sources of funds, must be dated no more than 180 days before the note date, except that our existing requirements for verbal verifications of employment and verifications of existence of business continue to apply.

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Resources for Housing Counselors

� Freddie Mac Loan Lookup –

https://ww3.freddiemac.com/corporate/

� Relief Refinance (Same Servicer) –

http://www.freddiemac.com/sell/factsheets/relief_refi_same_servicer.html

� Relief Refinance (Open Access) –

http://www.freddiemac.com/sell/factsheets/relief_refi_open_access.html

� HARP Fact Sheet for Housing Counselors -http://www.freddiemac.com/corporate/housingpros/pdf/Relief_Refinance_Mortgage_Housing_Counselor_Fact_Sheet.pdf

� 1-800-FREDDIE Option 2



Resources for Homeowners

� Home Affordable Refinance Program (HARP) Fact Sheet – Englishhttp://www.freddiemac.com/corporate/housingpros/pdf/relief_refi_consumer_fact_sheet.pdf

� Home Affordable Refinance Program (HARP) Fact Sheet – Spanishhttp://www.freddiemac.com/corporate/housingpros/pdf/relief_refi_consumer_fact_sheet_sp.pdf



Resources for Homeowners

� Borrower HARP Eligibility Tool –

http://www.freddiemac.com/avoidforeclosure/harp_eligibility.html

� HARP FAQs for Borrowers –

http://www.freddiemac.com/homeownership/educational/harp_faq.html

� General HARP Information for Borrowers –

http://www.freddiemac.com/avoidforeclosure/harp.html

� Participating Lenders (Open Access) –

http://www.freddiemac.com/avoidforeclosure/participating_lender_list.html


Questions?


Freddie Mac Relief Refinance (HARP) Mortgage SM Mac Relief Refinance (HARP) Mortgage SM ... green check False – red X ... Freddie Mac Relief Refinance (HARP) Mortgage SM

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