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Streamlined Refinance Mortgages
Two easy refinance mortgages up to 95% LTV

Related Products

Streamlined Refinance Mortgages are a fit for your borrowers looking to lower their rate and payment or refinance from an ARM to the security of a fixed-rate mortgage.

Freddie Mac's two offerings–our Streamlined Refinance Mortgage and the Freddie Mac-owned Streamlined Refinance Mortgage (where the mortgage being refinanced is owned by Freddie Mac)–provide flexibility for you and your borrowers.

Whether you take advantage of Loan Prospector® automated underwriting technology to assess Streamlined Refinance Mortgages or choose to manually underwrite these loans, you'll retain your customer base and profitably build new volume with less time invested by your production staff. You'll shorten your origination process with our minimal documentation requirements, and for Loan Prospector Accept mortgages, there are no manual checks required for payment history.

Feature Requirements
Property Type
  • 1- to 2-unit primary residences, including condos and PUDs.
  • Second homes
Eligible Mortgage Products
  • 15-, 20-, 30-, and 40-year fixed-rate mortgages
  • 5- and 7-year balloon/reset mortgages
  • Most standard ARMs
  • 12-month seasoning requirement for Streamlined Refinance Mortgages; no minimum seasoning requirement for Freddie Mac-owned Streamlined Refinance mortgages.
Ineligible Mortgages
  • A-minus Mortgages, Home Possible® Mortgages, Initial InterestSM Mortgages, Mortgages for Newly Constructed Homes, FHA/VA Mortgages, Section 502 Guaranteed Rural Housing Mortgages, and Section 184 Native American Mortgages, special purpose cash-out refinance mortgages; mortgages with negative amortization, mortgages secured by manufactured homes
Transaction Type
  • No cash-out refinance
Down Payment/Closing Costs
  • May roll into the new loan amount up to the loan amount of the mortgage being refinanced
Maximum LTV Ratios (without secondary financing)
  • 95% LTV, unless paying off a purchase money junior lien; then max LTV is 90%
Eligibility/Underwriting
  • Loan Prospector Accept mortgages
  • Manually underwritten mortgages with a minimum Indicator Score of 680 for Streamlined Refinance Mortgages.
  • Manually underwritten mortgages with a minimum Indicator Score of 620 for Freddie Mac-owned Streamlined Refinance Mortgages.
Execution Options
  • Servicing-retained Fixed-rate Cash
  • 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 or visit Exhibit 19 [PDF 494K].
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 24.3 and 24.4.

 

Download a Streamlined Refinance Mortgages fact sheet [PDF 111K] for more details.

Lender Benefits

Streamlined Refinance and Freddie Mac-owned Streamlined Refinance help you:

  • Retain your customer base and reduce loan runoff with options to meet a variety of borrower needs.
  • Improve efficiencies using Loan Prospector technology.

Benefits for Your Borrowers

For your borrowers, Streamlined Refinance Mortgages:

  • Lower their interest rate and payment on loans at least one year old, and eliminate upfront cost by rolling in closing costs, financing costs, prepaids and escrows into the new loan amount – up to the loan amount of the mortgage being refinanced.
  • Eliminate new appraisal or inspection costs when the value of the mortgaged premises has not declined from the value used to originate the mortgage being refinanced and you can represent and warrant this.

Get More Information

Training Opportunities

Streamlined Refinance Mortgages
Training Events workshop Workshop     webevent 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.


© 2008 Freddie Mac