WASHINGTON -- In a move designed to boost its business with low4ncome and minority borrowers, Freddie Mac announced Thursday that it would modify an existing loan program and offer a new service.
The government-backed agency, which buys loans from lenders, has loosened its rules on how borrowers fund their down payments and Closing costs on loans made with 5% down.
Freddie Mac also said lenders would now be able to get Freddie's assurance that a loan would be bought before the loan is closed.
In addition, the agency said at least two underwriters will review any loans Freddie Mac requires lenders to repurchase.