Home Affordable Refinance Program

Freddie Mac Amendments for LTV Ratios

On July 31, Freddie Mac announced plans to amend the Relief Refinance Mortgage Program, which includes the Home Affordable Refinance Program, to align requirements for mortgages with LTV ratios equal to or less than 80% with those of mortgages with LTV ratios greater than 80%. The alignment will eliminate many of the lender’s selling representation and warranty responsibilities on the original loans being refinanced, regardless of the borrower’s LTV ratio. Details are scheduled to be announced to lenders by mid-September. Freddie Mac Release.


On October 24, the FHFA released a series of changes to the Home Affordable Refinance Program (HARP) in order to attract more eligible borrowers. The changes to the program include: (i) the elimination and/or lowering of certain fees for borrowers; (ii) the removal of the LTV ceiling for fixed-rate mortgages backed by Fannie and Freddie; (iii) a waiver of certain representations and warranties with respect to loans owned or guaranteed by Fannie and Freddie; and (iv) the elimination of the requirement to obtain a new property appraisal in certain circumstances. The end date of the HARP program has been extended through December 31, 2013 for loans originally sold to the GSEs on or before May 31, 2009. The GSEs will issue guidance on the operational details of the changes by November 15. FHFA Release.


On March 11, the FHFA announced a one-year extension of the Home Affordable Refinance Program (HARP), a program administered by Fannie Mae and Freddie Mac, to June 30, 2012. In addition, Freddie Mac will exempt HARP loans from their recently announced price adjustments and Fannie Mae will conform their eligibility date to May 2009. FHFA Release.