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18 FREDDIE LAUNCHES NEW REFINANCE PROGRAM Freddie Mac announced a new enhanced relief refinancing offering intended to aid borrow- ers who are making their mortgage payments on time but are unable to participate in the GSE's "no cast-out" refinance program because their loan-to-value (LTV) ratio is above maximum requirements. e new program will be effec- tive for mortgages with applications on or after November 1, 2018. In order to be eligible for the Enhanced Relief Refinance Program, mortgages must be owned or securitized by Freddie Mac, possess a note date on or after October 1, 2017, and not currently hold the status of being a Freddie Mac Relief Refinance Mortgage. In addition, mortgages must not have been 30 days delinquent more than once in the last 12 months, nor 30 days delinquent in the past six months. It must also be a conven- tional fixed-rate mortgage, a conventional 5-year, a 5/1, a 7/1 or a 10/1 ARM. e Enhanced Relief Refinance Mortgage also must be originated for the purpose of either reducing the interest rate of the first lien mort- gage, switching an ARM to a fixed-rate mort- gage, reducing the amortization term, or reducing the monthly principal and interest payment. In a separate statement, the GSE also stated that affordability is down for potential home renters, much as it is for potential homeowners. Nationally, rents are rising at an annual rate of 3 percent. Freddie Mac attributes this to the fact that baby boomers are looking to downsize and millennials are entering the housing rental mar- ket. In fact, new rental households have increased by nine million in the last 10 years, which is the largest increase on record for that time span. According to the Joint Center for Housing Studies, 27 percent of renters are "rent-burdened" meaning they spend more than half of their income on housing costs. For reference, that number sat at 12 percent in the 60s. WELLS FARGO BUYS $51 BILLION IN MSRS FROM SENECA Wells Fargo will take over $51 billion in mortgage servicing rights from Seneca Mort- gage Investments, the bank announced in early September. According to its website, Seneca Mortgage will no longer service mortgage loans of any type. All loans in the acquired pool are convention- al/conforming mortgage loans that are guaran- teed by government-sponsored enterprises Fannie Mae and Freddie Mac. Franklin Codel, Head of Consumer Lend- ing at Wells Fargo, said the bank is making all efforts to ensure a smooth transfer for existing Seneca customers. Borrowers whose loans were previously serviced by Seneca will be receiving a Notice of Servicing Transfer in the mail, as well as welcome information from Wells Fargo. e transfer of all servicing responsibilities should be finalized by the end of the fourth quarter. "We look forward to the opportunity to provide excellent service to these new mort- gage customers and are committed to making this a smooth transition for them," Codel said. "Mortgage servicing is an attractive, core business for Wells Fargo, and this transaction provides an opportunity for us to strategically enhance our servicing portfolio." According to the announcement, data on the performance of the newly acquired loans will be released in the bank's third-quarter financial results. e acquisition will bring Wells Fargo's total servicing portfolio to over $1.5 trillion. e bank is the largest servicing of residential mort- gage loans in the U.S. e acquisition announcement came just days after Wells Fargo uncovered 1.4 million additional accounts fraudulently opened in its customers' names. Spurred by "unacceptable sales practices," according to CEO Timothy J. Sloan, the accounts will cost the bank around $6 million in refunds. Sloan told the Washington Post that his organization is "working hard to ensure this never happens again and to build a better bank for the future." The best defense for a better neighborhood Real People, Real Results www.assero24.com/defense

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