Freddie Mac issued Bulletin 2021-33, updating requirements with respect to the Refi Possible Mortgage Offering. Per the Bulletin, Freddie Mac:
- Removed the requirement that the borrower’s monthly payment be reduced by at least $50 (however, a reduction in the monthly payment and at least a 0.50% reduction in interest rate is still required);
- Removed the $5,000 limit on the amount of loan proceeds that may be used to pay closing costs;
- Increased the borrower income eligibility from 80% to 100% of the area median income; and
- Removed the requirement that the mortgage being refinanced be seasoned no more than 120 months (however, the minimum 12-month seasoning requirement continues to apply).
An effective date for the revisions related to increasing the borrower income eligibility and removal of the seasoning requirement will be announced in a bulletin on December 1, 2021. All other revisions are effective immediately.
Click to view the Freddie Mac Guide Bulletin 2021-33: https://www.tenaco.com/wp-content/uploads/2021/10/Freddie-Mac-Guide-Bulletin-2021-33-10-20-21.pdf
