Fannie, Freddie to expand refinance program-source
WASHINGTON, July 1 |
WASHINGTON, July 1 (Reuters) - Fannie Mae FNM.N and Freddie Mac FRE.N will expand their foreclosure-prevention efforts and refinance homeowners whose loan-to-value ratio is 125 percent, an administration souce said on Wednesday.
Under current rules, the mortgage finance companies may refinance only borrowers whose mortgage loan-to-value ratio is 105 percent. The new policy is intended to aid more struggling borrowers who have seen their property lose value in the recent years of a housing crisis.
(Reporting by Patrick Rucker; Editing by Chizu Nomiyama)
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