Both Fannie Mae and Freddie Mac (the GSEs) will be
expanding their low-income refinance programs to include those making at or
below 100 percent of an area’s median income (AMI). The threshold on the
programs is currently at 80 percent of AMI. Sandra L. Thompson, acting director of the Federal
Housing Finance Agency (FHFA) announced the change in her keynote address to
the Mortgage Bankers Associations annual conference on Monday. Her agency, in
monitoring the effects of the pandemic on different borrowers, found that,
while many borrowers have taken advantage of the record low interest rates to
refinance their mortgage, some population groups are at risk of being left
behind. “We know through our long experience, including the Great Recession,
that for those struggling with a mortgage, a meaningful payment reduction is
the single greatest predictor of successful performance,” she said.

 

…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.