McLEAN, Va. – Credit unions that have relationships with Freddie Mac should expect to find in the coming months a vast array of new products and upgrades to the company's Web-based Selling System.
Among the new announcements the housing Government Sponsored Enterprise expects to make are a new array of 40-year fixed-rate mortgages, 20 more adjustable-rate mortgage products and federally insured rural housing mortgage products to its Loan ProspectorT automated underwriting service.
Freddie Mac officials also announced the housing Government Sponsored Enterprise is shoring up its flagship suite of Home PossibleT affordable mortgage products by adding a special 40-year fixed-rate option and providing lenders with more competitive selling options.
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Leading off the rollout of 40-year mortgage options will be a standard 40-year fixed-rate product, a 40-year version of the Freddie 100 no-downpayment mortgage product and a 40-year Alt 97 mortgage.
The first set of planned enhancements include a 40-year fixed-rate version of the Home Possible mortgage that was first announced in 2005, and offers low down payments, flexible credit underwriting and conforming conventional rates to borrowers with impaired credit histories.
Separately, Freddie Mac is revising its property insurance requirements to facilitate mortgage purchases in coastal markets where insurers are raising their deductibles such as areas impacted in the last two years by severe hurricanes in Florida and along the Gulf Coast.
These changes are scheduled to take effect in July. Freddie Mac said the higher deductibles are also expected to help borrowers lower their annual insurance premiums. The company estimates the lower premiums could generate enough savings to offset the higher 5% deductible in two to four years.
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