Wednesday, February 4, 2009

Fannie Mae Streamline Refi coming soon?

Teaser from the National Mortgage News:

New Fannie Refi Options Coming
Fannie Mae plans to introduce refinancing options as soon as this week designed to help homeowners who have been unable to take advantage of recent low rates, a person with knowledge of the program said.


This might be the rumored program for streamlined refinance. What this means is the borrower will be able to refinance their current loan under current underwriting criteria without the need for appraisal. This would allow underwater homeowners to get the new lower rate loans even though they are upside down. You might ask why Fannie would allow this. Since they are guaranteeing the loan already this will strengthen their borrowers finances and allow them to be more likely to be able to keep paying on the loan. FHA already has a streamline refinance program for the same reason. I'm sure a very big deal will be made of it but the devil will be in the underwriting details as to how many can be helped.

2 comments:

thebaglady said...

I got a fannie mae streamline refinance already. This is not really that new. You can see the guidelines here:

https://www.efanniemae.com/sf/mortgageproducts/fixed/streamrefi.jsp

Anonymous said...

baglady might ahve gotten a streamline loan but not with the property being under water vs the laon balance. please read the guidelines on the site quoted. both MI coverage prohibits ltv's higer than 95% and the guidelines prohibit it also.

the advantage to the new proposal is no appraisal and considerable lower credit and income guidelines.