The availability of streamlined refinancing makes it easier for borrowers to refinance during periods of depressed home prices.
Specifically, Fannie Mae and Freddie Mac have announced that starting in late 2018 they will introduce permanent streamlined refinancing programs that will allow borrowers with high LTVs as a result of falling property prices to refinance using an automated appraisal and with no minimum credit score (Federal Housing Financing Agency 2017; Freddie Mac 2017).
* standard refinancing and enhanced streamlined refinancing
, when done through the institution that currently services the loan, relieves the lender from representation and warranties relating to the borrower's creditworthiness and home value, while a different-servicer refinancing requires more extensive underwriting of the new loan.
A truly streamlined refinancing
process would also enable a lender to build note modifications into the mortgage.
More important, their documentation remained fresh, making a streamlined refinancing
With that developed, "we did do some direct marketing early on in 1998, doing data mining of people in our servicing portfolio," he says, "and offering our streamlined refinancing
process to them, and that proved very successful.
Glory notes that streamlined refinancing guidelines have helped lenders this year.
Streamlined refinancing procedures also "saved us from the train wreck" in the back office, she adds.
2 Streamlined refinancing with a nonrisk-based mortgage insurance premium (MIP)
Thus, it appears that in weak markets, many borrowers may be employing the FHA streamlined refinancing program in a desperate attempt to avoid foreclosure by reducing their monthly mortgage payments.
The higher premium and closing-cost restrictions imposed on FHA business by the 1990 housing law applies to streamlined refinancings
as well, although that is still a sore point between some in Congress and HUD.