Until recently people who had loans backed by Freddie Mac could only participate in the Obama refinance program through their existing lender. Fannie Mae did not have the same restrictions. Word came out Friday that Freddie is following Fannie’s lead and will allow any qualified lender refinance via the Obama Home Affordable Refinance program. Here is an excerpt from a WSJ article on the subject:
Freddie Mac (FRE) loosened rules for its it Relief Refinance Mortgage program, allowing borrowers who are current on their mortgage payments to refinance their mortgages with any lender affiliated with Freddie Mac. …
Freddie Mac, which had required mortgages refinanced under the program to be refinanced with the original lender, also increased the amount of closing costs, financing costs and escrows that borrowers can roll into refinanced mortgages to the lesser of 4% of the refinanced amount or $5,000.