In its ongoing effort to provide affordable mortgages to families who have experienced a steep decline in home value, Fremont Bank, a full-service community bank in Northern California, is one of the first banks in the nation to fund new mortgages through President Obama's “Making Home Affordable" refinance program.
This program offers loans on properties over 100 percent of the home's value. Just one month after the release, the bank has successfully assisted 57 families with nearly 400 families in process who would not have been able to refinance without this new program.
This new refinance program helps responsible homeowners who have been impacted by sharply declining home values by making it possible for them to refinance their higher rate mortgage into a lower rate mortgage, which in turn lowers their monthly mortgage payments. The simplified underwriting approach offered by Fannie Mae and Freddie Mac allows the bank to require much less documentation with this new program. This simplified underwriting requirement, coupled with historically low mortgage rates, will benefit many Bay Area residents with a remarkable mortgage refinancing opportunity.
For example, many qualified Fremont Bank families successfully lowered their monthly payments and will realize an annual savings between $1,000-$1,500. Most are refinancing without paying any closing costs.
“Fremont Bank has leveraged multiple scenarios to help its qualified clients stay in their homes by capitalizing on these 'Making Home Affordable' programs introduced by the federal government and Fannie Mae,” says Fremont Bank’s Vice President of Residential Lending Gary De Luca. “Our unwavering goal is to keep Bay Area families in their homes and help them in this extraordinary economic environment. Without the quick response of Fremont Bank and other lending institutions in offering the 'Making Home Affordable' program, homeowners could be looking at a pretty bleak scenario. Fortunately, the scenario is changing.”
For more information, visit www.fremontbank.com.