Frequently Asked Questions Making Home Affordable Program for Freddie Mac-owned Mortgages

General

What do I do if my lender/servicer is not responding to my inquiries?

Keep trying. Call volume is high, and it may take several attempts for you to reach your mortgage servicer. Servicers are working quickly to assist hundreds of thousands of struggling borrowers, and focus first on those who are in most immediate danger of losing their homes. Your request will be addressed, but it may take longer than you would like.

In the meantime, continue to make your mortgage payments if at all possible. Freddie Mac and the lenders who are servicing mortgages on our behalf are dedicated to helping you keep your home if possible – so continue to work directly with your mortgage servicer to find the option that’s best for you.

How do I know if the information I receive about potential loan modification is legitimate?

If you receive a letter offering a mortgage modification from a company other than your current mortgage servicer (the company you make your mortgage payments to) or an authorized agent of Freddie Mac, the letter is probably not legitimate.

Legitimate offers will have specific information identifying your current mortgage, including the loan number your mortgage servicer uses with your mortgage – which is printed on your statement. In addition, legitimate workout programs do not charge you a fee to modify your loan. If you receive a letter or phone call about a program that charges a fee, this is not a Freddie Mac-approved offering and you should not respond to these offers.

Home Affordable Refinance/Relief Refinance Mortgages

Is the "Relief Refinance Mortgage" the same as a Home Affordable Refinance?

Yes. Freddie Mac’s Relief Refinance Mortgage is our business implementation of the Home Affordable Refinance. We use the term Relief Refinance Mortgage to describe our requirements and operational processes with lenders and other partners with whom we do business. Many lenders may choose to use a different name for this mortgage, and their customer service contacts may only know the mortgage by the name the lending institution uses. The important point is that you speak with your lender about their available refinance options based on your individual situation.
What if I’m not eligible for a Home Affordable Refinance?

Not all borrowers will qualify to have their mortgage refinanced under the Home Affordable Refinance program. There are many reasons for this, including income and other credit requirements and the capacity to continue paying monthly mortgage payments at the new amount. In addition, borrowers who are delinquent on their mortgage payments are not eligible for a Home Affordable Refinance.

If you are having difficulty paying your mortgage or are delinquent on your mortgage payments, you may be eligible for a Home Affordable Modification and you should contact your mortgage servicer to discuss this option.
Will refinancing reduce the principal amount that I owe on my loan?

No. The objective of the Home Affordable Refinance is to help borrowers get into more affordable loans. Refinancing will not reduce the principal amount you owe to the first mortgage holder or any other debt you owe. However, refinancing should save you money by reducing the amount of interest that you pay over the life of the loan or benefit you by putting you into a loan with more favorable terms.
Can I get cash out to pay other debts?

No. This is a rate-and-term refinance, not a cash-out refinance program. For borrowers whose loans are owned or securitized by Freddie Mac, closing costs (not to exceed $5,000) – such as the cost of an appraisal or title report -- may be included in the refinanced amount.
Are there any fees associated with this program?

The Home Affordable Refinance is like any other mortgage where the borrower may be required to pay certain closing costs, which are for the application, processing, appraisal, title search and other items necessary to complete your refinance. Freddie Mac charges some fees to lenders when they sell us your refinance mortgage, but we have no direct control over any fees assessed by your lender.

Closing costs are a standard part of any mortgage transaction, including the Home Affordable Refinance. In most cases, Freddie Mac allows lenders to roll in a portion of the closing costs into your new loan amount up to $5,000. You will be expected to pay any additional closing costs above this amount at settlement.
Can Freddie Mac lower the interest rate on my Home Affordable Refinance?

Freddie Mac does not control mortgage interest rates or the current rates quoted to you by your lender for a Home Affordable Refinance. Like all mortgages, interest rates for Home Affordable Refinances can vary by lender or geographic area, and can increase or decrease regularly based on a number of factors, including the capital markets, your individual credit history, and the type and value of the property you are trying to refinance.
Am I eligible for a Home Affordable Refinance on my jumbo mortgage?

It depends on how large your mortgage is and where it’s located. There may be additional requirements for your current mortgage and for the amount allowed under the new Home Affordable Refinance mortgage. You should get more information from your lender.
What if I want to refinance my loan with a different lender?

At this time, the only entity that has the ability to execute a Home Affordable Refinance is the lender who is currently servicing your mortgage. However, beginning October 1, 2009, you will be able to use any Freddie Mac-approved lender to obtain a Freddie Mac Relief Refinance Mortgage, even if they’re not currently servicing your mortgage.
Why do I need to be re-qualified for a Home Affordable Refinance when they already have all of my previous information?

Freddie Mac requires its servicers to re-qualify applicants if it is determined that the monthly mortgage payment will increase more than 20 percent with a Home Affordable Refinance. This is to ensure that you can adequately make the increased monthly mortgage payments.
Aren’t you obligated to refinance all mortgages that you own?

No. We are working with the administration and the Treasury Department to implement our requirements for the Home Affordable Refinance. While the goal of the program is to help as many borrowers as possible take advantage of refinancing, there are specific criteria for eligibility. Not all borrowers with Freddie Mac-owned mortgages are eligible for a Home Affordable Refinance.
I received a letter from my servicer suggesting that I pursue a mortgage modification, but I would rather refinance. Can I?

If you received a solicitation from your mortgage servicer indicating that you may be eligible for a Home Affordable Modification, it is because their records indicate that you are delinquent on your mortgage. Borrowers who are not current on their mortgage payments are not eligible for a Home Affordable Refinance, and won’t be eligible until they have had no 30-day or more late payments in a 12-month timeframe.

Home Affordable Modification

What if I’m not eligible for a Home Affordable Modification?

Not all borrowers will qualify to have their mortgage modified under the Home Affordable Modification program. However, there are other modification options and other alternatives to foreclosure – some of which may involve transitioning out of your home.

Your mortgage servicer will help you assess the best options available to you based on your individual circumstances. You can also contact the Department of Housing and Urban Development at http://www.hud.gov/offices/hsg/sfh/hcc/fc/ to find a foreclosure avoidance counselor in your area.
My loan is scheduled to go into foreclosure soon. What should I do?

Freddie Mac requires servicers to postpone foreclosure sales on all Freddie Mac- owned mortgages that are in the evaluation process for a Home Affordable Modification or other foreclosure alternative. However, if your loan has been scheduled for foreclosure or you have missed one or more mortgage payments, you should contact your mortgage servicer immediately.

You can also contact a HUD-approved housing counselor to learn more about your options by calling 888-995-HOPE^TM (4673) or 800-569-4287.
Why have I not received the same information about obtaining a Home Affordable Modification like many of my neighbors/coworkers/friends have?

If you’re currently making your monthly mortgage payments, or are less than 31 days delinquent on a payment, your mortgage servicer will not have contacted you about a Home Affordable Modification. However, you may still be eligible for a modification under the program if you can prove a significant hardship (such as job loss, reduction in salary, divorce, etc.) that will make it difficult for you to continue to make your monthly payments in the near future.

If you believe that you may be eligible for a Home Affordable Modification because you have a qualifying financial hardship, you should continue to make your monthly mortgage payments and contact your mortgage servicer.
Why am I getting repeat requests for personal information and documentation from my servicer?

Please try to be patient and continue to provide the information that your mortgage servicer requests. A mortgage modification is a complex process that requires a significant amount of documentation – and frequently the same information is required at multiple points in the process, and in multiple documents.
Why can't I get my second mortgage/home equity loan modified under the Making Home Affordable program?

The Home Affordable Modification program will shortly add a second mortgage modification option. Please contact the servicer of your second mortgage for more details. They may already be able to begin the second mortgage modification process.
I am worried that I will face foreclosure before my mortgage modification eligibility is determined. What should I do?

Freddie Mac requires servicers to postpone foreclosure sales on all Freddie Mac-owned mortgages that are in the evaluation process for a Home Affordable Modification or other foreclosure alternative. If your loan has been scheduled for foreclosure or you have missed one or more mortgage payments you should contact your mortgage servicer immediately.

You can also contact a HUD-approved housing counselor to learn more about your options by calling 888-995-HOPE^TM (4673) or 800-569-4287.