Program could help lower-income borrowers.
The federal regulator of Fannie Mae and Freddie Mac unveiled a new program Wednesday to ease credit requirements, simplify documentation and waive certain fees for borrowers seeking to refinance their homes. The initiative is aimed at helping more households lock in historically low-interest rates, targeting lower-income borrowers who have missed out on the refinancing boom of the past year.
The Federal Housing Finance Agency, which oversees the two government-controlled mortgage giants, said the program is expected to be available by summer.
“Last year saw a spike in refinances, but more than 2 million low-income families did not take advantage of the record low mortgage rates by refinancing,” FHFA Director Mark Calabria said.
To benefit from the changes, borrowers would need to make 80% or less of their area’s median income and not have missed more than one mortgage payment in the past 12 months. The program only applies to borrowers with existing loans backed by the mortgage giants and it will be up to lenders to participate in it.
As the Lord Leads, Pray with Us…
- For the FHFA as they administer the new lending program.
- For the continued recovery of the American economy as the pandemic declines.
Sources: Wall Street Journal, Market Watch
