DOW JONES NEWSWIRES
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.
The government-chartered company, long a big player in the
mortgage business, launched the program in March as part of
President Barack Obama's Making Home Affordable initiative. Freddie
Mac has been working to salvage the housing market after the bubble
burst by stalling foreclosures and helping owners refinance.
"We are responding to consumers' desires to have more
refinancing options," said Freddie Mac Executive Vice President Don
Bisenius. "As an added benefit, we are expanding the program and
providing greater flexibility in financing closing costs. Freddie
Mac is committed to doing everything we can to bring the benefits
of the Administration's Making Home Affordable program to as many
borrowers as possible."
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.
-By Jay Miller, Dow Jones Newswires; 201-938-2331;
jay.miller@dowjones.com