Freddie Mac Guidelines: Deleted Relief Refinance Program

What Happened to This Program

Fannie Mae eliminated guideline 4303.4 in October 2019, which means you cannot get a new mortgage under the Freddie Mac Relief Refinance Mortgage — Open Access program through Fannie Mae. This deletion reflects the government-sponsored enterprises' efforts to streamline their programs and eliminate overlapping products.

The timing of this deletion coincided with broader changes in the mortgage industry. Both Fannie Mae and Freddie Mac were consolidating their relief refinance offerings and focusing resources on their primary refinance programs.

If you found references to this guideline online or in older mortgage materials, that explains the confusion. Many websites and documents still reference deleted guidelines, creating frustration for borrowers who think they might qualify for programs that no longer exist.

Current Relief Refinance Options

Since Fannie Mae deleted this pathway, borrowers seeking relief refinancing have several alternatives. Fannie Mae offers its own High Loan-to-Value Refinance Option (HIRO) for underwater borrowers who need to refinance but owe more than their home is worth.

The HIRO program serves many of the same borrowers who might have used the deleted Freddie Mac Relief Refinance option. You can refinance up to 97% loan-to-value if your current mortgage is owned by Fannie Mae and you meet specific eligibility requirements.

Freddie Mac continues to offer its Enhanced Relief Refinance program directly. If you have a Freddie Mac-owned loan, you might qualify for this option even though Fannie Mae no longer delivers these loans. You would need to work with a lender approved to originate Freddie Mac loans directly.

Why Fannie Mae Deleted This Guideline

The deletion reflects the reality that Fannie Mae and Freddie Mac are separate entities with their own relief programs. Having Fannie Mae deliver Freddie Mac relief refinance mortgages created unnecessary complexity in the secondary mortgage market.

Each government-sponsored enterprise developed its own approach to helping underwater borrowers. Rather than cross-delivering loans between the two agencies, the industry moved toward cleaner separation of their respective programs.

This change also eliminated potential confusion among lenders about which agency's guidelines to follow when originating relief refinance loans. Lenders now have clearer direction about which programs to use based on who owns the borrower's existing mortgage.

What This Means for Your Loan Search

If you were researching this deleted guideline, you likely have a Freddie Mac-owned loan and need refinancing help. Your first step is confirming who actually owns your current mortgage. Many borrowers assume they know but are wrong about which agency holds their loan.

You can check mortgage ownership through the Fannie Mae loan lookup tool or Freddie Mac's loan lookup service. These free online tools tell you definitively which agency, if any, owns your current mortgage.

Once you know the owner, you can pursue the appropriate relief refinance program. If Fannie Mae owns your loan, explore the HIRO program. If Freddie Mac owns it, look into Enhanced Relief Refinance options.

Documentation You Still Need

Regardless of which relief refinance program you pursue, you will need similar documentation. Lenders require recent pay stubs, tax returns, bank statements, and a current mortgage statement. The specific requirements vary by program, but the basic financial documentation remains consistent.

Relief refinance programs typically have streamlined documentation compared to purchase loans or cash-out refinances. However, you still need to demonstrate your ability to make the new payment and meet basic credit requirements.

Some programs allow reduced documentation if you are refinancing into a lower payment. Others require full income and asset verification even for relief refinances. Your lender will explain the specific requirements based on which program fits your situation.

Common Confusion Points

Many borrowers waste time researching deleted guidelines because mortgage information online becomes outdated quickly. Government agencies regularly update, modify, or eliminate programs based on market conditions and policy changes.

Always verify that any guideline you research is current. Check the effective dates and look for deletion notices. Fannie Mae clearly marks deleted sections in its Selling Guide, but third-party websites often lag behind these changes.

Another common mistake is assuming that all relief refinance programs work the same way. Each has different eligibility requirements, loan-to-value limits, and documentation standards. What worked for your neighbor might not apply to your situation if you have loans owned by different agencies.

Working with Lenders

When you contact lenders about relief refinancing, mention that you know guideline 4303.4 was deleted. This shows you have done research and understand that outdated information exists online. Knowledgeable loan officers will appreciate that you are not chasing programs that no longer exist.

Ask your lender to explain which current programs might work for your situation. A good loan officer will check your mortgage ownership and recommend the appropriate Fannie Mae or Freddie Mac program based on your specific circumstances.

Be prepared for lenders who are not familiar with the deletion of this guideline. Some loan officers work primarily with conventional purchase loans and may not stay current on relief refinance program changes. If you encounter confusion, ask to speak with someone who specializes in government-sponsored enterprise programs.

References

For the official guidelines, see 4303.4: Delivery and pooling requirements for Freddie Mac Relief Refinance Mortgages℠ — Open Access in the Fannie Mae Selling Guide.