Does Fannie or Freddie Own My Mortgage

by Nat from Maryland

Ask Kate does Fannie Mae or Freddie Mac own my mortgage loan: Dear Kate, My huge nationwide lender says they don't know who owns my mortgage. I bought my home in 2007 and my mortgage has a 6.125 interest rate. I have never missed a payment but my home is now severely under water.


Nat continues... When I found out about the HARP program (through your website), I contacted another mortgage lender to find out if I qualified for HARP because as the years have gone by I've lost trust in my bank.

According to that mortgage lender, my loan is owned by Fannie Mae. So because I meet the other HARP qualification criteria, this lender said I should be able to qualify for HARP. But I would have to apply for HARP through my original mortgage lender.

So I contacted them and was quickly told that I don't qualify because my loan is not owned by Fannie or Freddie. When I asked who owns my mortgage, they told me, "We don't know who owns your mortgage."

I didn't understand their explanation. If the bank doesn't know who owns my mortgage, then who receives my monthly payments?

Then they told me because my home is so underwater, I don't qualify for a refinance or any type of loan modification.

Can you tell me how I find out who owns my mortgage, and how I might be able to obtain a refi or loan modification. Would another lender be able to help me out?

If I can't refinance, what else can I do to help myself get to a better financial position? Should I start paying extra "principal only payments" to help lower the interest, or are there other options to consider?

If you think making extra monthly payments is the answer, what percentage of my mortgage should I pay? I've read suggestions that you should make extra payments that will equal a 13th mortgage payment per year? Thank you in advance for your advice on this matter.

Kate Answers: Does Fannie or Freddie Own My Mortgage Loan

***zz-portrait-left.shtml*** Dear Nat,

Ridiculously bad behavior for an enormous bank. Really shameful.

So do this. Call Fannie Mae yourself at 1-800-7FANNIE and do what the bank should have.

You can also call Freddie Mac at 1-800-FREDDIE.

New! Find participating Freddie Mac and Fannie Mae Lenders here!

Can Your Mortgage Loan Be Too Far Underwater for HARP 2

As far as being underwater, your mortgage can't be too far underwater now due to HARP 2. Loan to value restrictions were lifted, after all. ***zzz-link-harp-announcement.shtml*** But it is important to note that HARP 2 features are being rolled out incrementally. A few improvements here and a few there.

Look for announcements in the blue box on this page or at my Best Mortgage Rate Blog.

How to Shop for HARP Lenders

Back to who owns your loan. If you find out that either Fannie Mae or Freddie Mac owns your mortgage, call your bank back with the news and see how they react.

But you can also shop and compare other lenders. Go to How to Compare Mortgage Lenders with Ease and How to Reduce Mortgage Refinancing Costs for tips based on my years of experience originating mortgages and working one on one with borrowers. ***zzz-link-harp-freddie.shtml***

What If I Can't Refinance My Mortgage?

Nat, don't give up too easily on HARP. It could make your mortgage payment much more affordable. But if it turns out your loan is not eligible, I have two suggestions to help you keep on track to being debt free.

Years before we suspected the value of homes across the United States were about to plummet creating underwater mortgages, I wrote How to Get the Best Fixed Rate Mortgage. The same principals are true today.

Another note I would add is this. Whether you have consumer debt, an underwater mortgage, or are fortunate to still have equity, most everyone wants to be debt free. I think you'll like the step by step plan in my new book, The Mortgage Freedom Project. ***zz-newsletter.shtml*** Good luck, Nat. I wish you the very best.


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Great SIte !!
by: Patricia

Hello Kate :) First and Foremost I would like to say Thank You for such an Empowering site. Knowledge is truly power. I think I have a statement more than a question as I have researched and inquired about everything out there in terms of a Modification, HUD Counselors, etc.

But many Homeowners have not or do not. In the event you are lucky enough to get a HUD Counselor or Mortgage Representative that is passionate about what they do and have a willingness to truly assist a struggling homeowner and not someone who is causing confusion or providing inaccurate and unreliable information, then it is sites like yours that provide TRUTH. I believe that is all most are looking for. THANK YOU AGAIN

If Fannie or Freddie Do NOT Own My Loan
by: Homeowner

Thanks to you I will now call Fannie or Freddie to see if they own my loan. If they do not, what programs, if any, are out there for the rest of us? We have never made a mortgage payment late, have excellent credit, but are seriously underwater. We would like to get our monthly payments down by obtaining a lower interest rate, is there any help out there for us? Thank you.

Hi, Kate here. Hopefully you will find your mortgage is owned by Fannie Mae or Freddie Mac. If not, alternative solutions for underwater mortgages are listed at HARP 3.0 Refinance News under "Alternative Mortgage Refinance and Modification Programs". Good luck! Kate

P.S. Don't forget to write your elected officials in the government to let them know you want more options to refinance your upside down mortgage!

Mortgage Owned by Freddie Mac
by: Barton in St Augustine, FL

My mortgage is owned by Freddie Mac and serviced by M&T. Can I shop around for a new company with better HARP rates? I do not like M&T.

Hi Barton, Kate here: Yes, you can shop around. In fact, I recommend it. You will find a partial list of Freddie Mac mortgage lenders who are participating in HARP, right here on this page.

Best wishes, Kate

Confusion, Confusion and MORE....
by: Anonymous

Kate, I will cut to the chase! I purchased my home in 06 with 100 percent financing, a 1st and 2nd mortgage combination but now serviced by separate banks.

1st modified to 40 year with lower interest rate. 2nd modified to 15 year with balloon payment due. I was not aware of the balloon payment.

I am currently struggling and my home is underwater by $200,000. I did an offer in compromise on my 2nd and was told "we are not obligated to accept an Offer in Compromise". Spoke to a broker who says my 1st cannot be modified as it is a "one and done".

Went to a Making Home Affordable Program yesterday and was told as of 6/1/12 new programs to include: a 2nd modification for the "one and done" folks and short pay "find bank to buy your 1st loan at current market value".

If I default on my 2nd, it hurts me for future programs. I have a Freddie Mac on my 1st. What am I eligible for out there on my 1st and 2nd?

Hi Kate here. Going off the March 2012 announcement, a property can be modified one time using the original HAMP Tier 1. Then per the March 2012 announcement, modified once again under the new HAMP Tier 2. The broader HAMP Tier 2 guidelines are intended to help more homeowners.

If that fails, it looks like the next step through Making Home Affordable (MHA) is to refer the homeowner to Home Affordable Foreclosure Alternatives (HAFA), HAFA Deed in Lieu and HAFA Short Sale.

I hope you can continue to struggle through with making your mortgage payments until an MHA option meets your needs, especially with the 2nd mortgage.

One more thing, because you have a Freddie Mac loan, have you thought of applying for a new HARP 2 refinance to see what happens. You don't have much to lose.

Best wishes and I hope you will comment here on your progress, Kate

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