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Streamlined Refinance MortgageAn easy refinance mortgage up to 95 percent LTV

When Freddie Mac owns the mortgage being refinanced, our Streamlined Refinance Mortgage helps you reach more borrowers with a refinancing option that provides greater stability for the long-term.

With this mortgage solution, you can offer LTV ratios up to 95 percent and the ability to roll in all closing costs, financing costs and prepaids/escrows in to the refinance mortgage. For added flexibility you can also provide cash back to the borrower up to 2 percent of the refinance mortgage amount or $2,000, whichever is less.

Product Features

Streamlined Refinance Mortgage Requirements
General Eligibility	The mortgage being refinanced must: Be a first-lien, conventional mortgage currently owned by Freddie Mac, in whole or in part, or securitized by Freddie Mac Be serviced by the Seller, or an affiliate of the Seller, originating the Freddie Mac-owned Streamlined Refinance Mortgage Be seasoned for at least three months Have met Freddie Mac’s eligibility requirements in the Guide as of the note date, including but not limited to, credit, underwriting, collateral and appraisal requirements, and was: An Accept mortgage A manually underwritten mortgage conforming to Freddie Mac Guide requirements Not an A-minus Mortgage
Mortgage Payment History	The mortgage being refinanced has been current for the most recent 90 days and has not been 30 days delinquent more than once in the most recent 12 months, or if the mortgage being refinanced is seasoned for less than 12 months, since the mortgage note date.
Borrower Benefit	A Freddie Mac-owned Streamlined Refinance Mortgage must be originated for one or more of the following purposes: A reduction in the interest rate of the first-lien mortgage A reduction in the amortization term of the first-lien mortgage To replace an ARM, an Initial InterestSM Mortgage or balloon/reset mortgage with a fixed-rate, fully amortizing mortgage
Property Type	1- to 2-unit primary residences, including condos and PUDs. 1- unit second homes provided the mortgage being refinanced was underwritten and sold to Freddie Mac as second-home mortgage
Eligible Mortgage Products	15-, 20- and 30-year fixed-rate mortgages  5/1, 7/1, 10/1 ARMs Super conforming mortgages If the mortgage being refinanced is a fixed-rate mortgage, the Streamlined Refinance Mortgage may not be an ARM
Refinance Proceeds	Proceeds from the Streamlined Refinance Mortgage may only be used to: Pay off the first mortgage Pay related closing costs, financing costs and prepaid/escrows Disburse cash out to the borrower (or any other payee) up to 2 percent of the refinance mortgage or $2,000, whichever is less Proceeds may not be used to pay off or pay down any junior liens. The Streamlined Refinance Mortgage amount may not exceed the original mortgage amount
Maximum LTV Ratios	Maximum LTV ratio up to 95 percent for a 1-unit primary residence For maximum LTV ratio requirements for super conforming mortgages, see Guide Chapter L33.
Eligibility/Underwriting	Must be manually underwritten Minimum Indicator Score of 620 Verification of income and employment is not required The principal and interest payment on the Streamlined Refinance Mortgage must not be more than 20 percent greater than the principal and interest payment most frequently made by the borrower in the most recent 12 months.
Execution Options	Fixed-rate Cash (servicing-retained) WAC ARM Cash Fixed-rate Guarantor WAC ARM Guarantor MultiLender Swap (Non-seasoned mortgages only)
Delivery Fees	Postsettlement delivery fees apply based on the unpaid principal balance of the mortgage (including the financed discount points) and the gross LTV ratio. See Guide Exhibit 19 for details on these fees and all other applicable fees.
Special Delivery Requirements	You must deliver all mortgage data required by Form 11 or 13SF, as applicable, including the Note Interest Rate and the gross LTV ratio calculated by our systems.
Single-Family Seller/Servicer Guide	Refer to Guide Sections 24.4.

Download a Streamlined Refinance Mortgages fact sheet for more details.

Lender Benefits

Freddie Mac-owned Streamlined Refinance help you:

• Retain your customer base and reduce loan runoff with options to meet a variety of borrower needs.
• Offer reduced documentation requirements and timelines for refinancing

Benefits for Your Borrowers

For your borrowers, Streamlined Refinance Mortgages:

• Lower their interest rate and monthly mortgage payments.
• Reduce up front costs by financing closing costs, financing costs, and prepaids/escrows
• Refinance from an ARM to the security of a fixed-rate mortgage

Get More Information

• Call your Freddie Mac representative.
• Download a Streamlined Refinance Mortgages fact sheet.

Training Opportunities

Streamlined Refinance Mortgages

Training Events Workshop     Web Event
Mortgage Products: More Choices for More Borrowers - 1 day

The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.