Freddie Mac Expanding Eligibility to Help More Low- and Moderate-Income Homeowners Refinance Affordably

Rhea-AI Summary

On October 18, 2021, Freddie Mac (OTCQB: FMCC) announced the expansion of its low-income refinance programs, now including borrowers up to 100% of the area median income (AMI), an increase from the previous 80% AMI threshold. This initiative, part of the Refi Possible program launched in August, aims to help lower-income homeowners lower their mortgage rates and monthly payments by an estimated $100 to $250. Freddie Mac continues to focus on equitable homeownership opportunities, partnering with lenders and the Federal Housing Finance Agency to support sustainable housing.

Positive

• Expansion of refinance programs to borrowers at or below 100% AMI.
• Estimated savings of $100 to $250 per month for homeowners refinancing.
• Partnership with the Federal Housing Finance Agency to enhance program accessibility.

Negative

• None.

MCLEAN, Va., Oct. 18, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today issued the following statement in support of an announcement by the Federal Housing Finance Agency (FHFA) that Freddie Mac and Fannie Mae’s low-income refinance programs will be expanded to include those making at or below 100% of the area median income (AMI)—up from 80% AMI.

Donna Corley, Freddie Mac executive vice president and head of Single-Family released the following statement:

“Freddie Mac is taking action to ensure more deserving homeowners can benefit from today’s low mortgage rate environment through refinancing. Working with our lender clients and the Federal Housing Finance Agency, we are now able to help even more lower-income households reduce their interest rate and their monthly mortgage payment through our Refi Possible solution. Our priority is to create more equitable opportunities that responsibly support sustainable homeownership.”

Launched in August, Refi Possible^SM is available to low- and moderate-income homeowners with a Freddie Mac-backed single-family mortgage. These homeowners will benefit from a reduced interest rate and lower mortgage payment, helping those who have not refinanced save an estimated $100 to $250 a month.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT:
Chad Wandler
709-903-2446
Chad_Wandler@FreddieMac.com

FAQ

What is the significance of Freddie Mac's recent announcement regarding refinance programs?

Freddie Mac expanded its low-income refinance programs to include borrowers earning up to 100% of AMI, allowing more homeowners to benefit from mortgage refinancing.

When did Freddie Mac launch the Refi Possible program?

The Refi Possible program was launched in August 2021 to assist low- and moderate-income homeowners in refinancing their mortgages.

How much do homeowners potentially save through the Refi Possible program?

Homeowners can save an estimated $100 to $250 per month by refinancing through the Refi Possible program.

What is FMCC's role in supporting affordable housing?

FMCC, through Freddie Mac, provides mortgage capital to lenders, making housing more accessible and affordable for families and individuals.