Freddie Mac (OTCQB: FMCC) announced the availability of new, standardized mortgage documents designed to standardize down payment assistance (DPA) programs.
Traditionally, subordinate lien documents were tailored to specific housing finance agencies (HFAs). In offering standardized subordinate lien documents, lenders will be able to work with a wider number of HFAs in a more efficiently organized manner.
Freddie Mac plans to have the standardized lien documents available for at 19 nineteen states by the end of the year, followed by the remaining states and the District of Columbia in 2024.
“Saving for a down payment continues to be the largest barrier to homeownership for lower-income and first-time homebuyers,” said Danny Gardner, single-family senior vice president of mission and community engagement at Freddie Mac. “We know that standardization has increased efficiency, lowered costs and improved many areas of the mortgage industry. By embracing standardization and creating a set of industry-wide documents, we are providing clarity and consistency that will enable more lenders to help more individuals and families leverage down payment assistance programs across the country.”
