On April 16, the FHFA announced a new product proposal for Freddie Mac to purchase closed-end second mortgages, aimed at offering borrowers more affordable options to leverage home equity than obtaining a cash-out refinance. The proposal establishes guidelines for the purchase of these loans, including an 80% combined LTV limit and a fully amortizing term of 20 years.
The new product proposal is open for public comment until May 22, 2024, and SFA has formed a task force (open to SFA members only) that will formally respond to the proposal. Please click here to join the task force, and feel free to email Dallin.Merrill@StructuredFinance.org with any questions.