Fannie Mae Updates RefiNow Guidelines

On June 16, 2021, Fannie Mae released an updated version of Lender Letter (LL-2021-10) detailing the terms of the RefiNow program for certain refinance loans, which has been available for loans with application dates beginning on June 5, 2021.

Fannie Mae’s RefiNow program offers expanded eligibility and lender incentives to help certain low-income borrowers take advantage of the current low interest rate environment by refinancing their existing Fannie Mae-backed loans.

The June 16 changes to the Lender Letter, which was initially published on May 5: (1) provide for existing subordinate financing to be simultaneously refinanced as part of a RefiNow transaction; (2) provide for borrowers who have resolved missed payments as a result of a COVID-19 forbearance to be eligible for a new RefiNow transaction; and (3) clarify the paystub requirements.