Freddie Mac has announced the highlights of several improvements being developed for its Relief Refinance Mortgage product under the Obama Administration's Making Home Affordable Program. Once Freddie makes the changes effective, borrowers will be able to refinance a Freddie Mac mortgage with any lender affiliated with the company ("Open Access"), not just the current servicer ("Same Servicer"). Fannie Mae already allows refinancing with any Fannie-approved servicer. If borrowers with Freddie loans choose not to use their current servicer, the new mortgage must be fully underwritten and meet all Freddie Mac eligibility, underwriting, appraisal, and documentation requirements. Borrowers who chose to use their current servicer will have lower fees and in most cases will be able to avoid re-underwriting and a new appraisal.

Freddie will allow borrowers to include more closing costs in both the "Same Servicer and "Open Access" Relief Refinance mortgages. The new amount will be the lower of 4 percent of the new mortgage amount or $5,000 (the current maximum is $2,500). Freddie is also in the process of updating pricing requirements, and more details are expected in a few weeks.

Freddie Mac News Release
Freddie Mac Preview of Expanded Eligibility for Relief Refinance Mortgages and Updated Pricing Requirements