02/20/2009
FHFA has indicated that Fannie Mae and Freddie Mac Refinance Initiatives to assist homeowners with high current loan-to-value mortgages would be a proper exercise of their existing authorities. Fannie Mae and Freddie Mac will make available refinancing opportunities for loans they hold or have guaranteed with current loan-to-value ratios of up to 105%. The Enterprises intend to provide detailed implementation plans in the near term as the program is rolled out.
The attached correspondence provides a summary of FHFA’s views on the initiative’s purposes, scope, limitations, and relation to mortgage insurance.
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030