by Bill McBride on 12/10/2008 06:49:00 PM
Wednesday, December 10, 2008
From Bloomberg: Fannie, Freddie May Waive Appraisals for Refinancings
Fannie Mae and Freddie Mac, the mortgage-finance companies seized by the U.S. government, are considering forgoing new appraisals on refinanced loans to help struggling homeowners, their regulator said.Update: I misread this proposal. Mort_fin notes:
“If they refinance someone, rather than doing a loan mod, do they need a new appraisal if they already have the credit?” Federal Housing Finance Agency Director James Lockhart told reporters after a speech in Washington today. “That’s an issue that’s being discussed. They’re looking at it.”
I think we're only talking rate and term refi here, and only if the GSE is refi'ing a loan it already has on its books. If today I have a $100,000 loan at 6% on an $80,000 house, and tomorrow I have a $100,000 loan at 5% on the same $80,000 house, am I better off or worse off?
FHA and VA been doing this for 25 years. FHA'S streamline refinance program and VA's interest rate reduction loan program.
Posted by Bill McBride on 12/10/2008 06:49:00 PM