Fannie Mae and Freddie Mac late Tuesday afternoon released a somewhat detailed bulletin on the underwriting guidelines for refinancing underwater borrowers with GSE loans, segmenting what's allowable based on the LTV and if the product is being offered by the current servicer.

The points charged on these loans vary from 75 basis points to 200, depending on the LTV and whether it's a 20- or 30-year loan.

Mortgage bankers pitching the 'HARP 2.0' refi program to current customers will no longer have to make representations and warranties to Fannie Mae and Freddie Mac if the LTV is north of 80%.

But to engage in such a refi the servicer must verify that at least one borrower whose name is on the loan has a source of income.

The Federal Housing Finance Agency also is allowing the GSEs to waive the appraisal and AVM requirement.

Under the new program, mortgage customers can submit applications beginning Dec. 1 and up until yearend 2013.

The refi effort is being carried out under the HARP program or what Freddie calls its 'Relief Refinance Program.' The LTV cap has been removed entirely. Previously it was set at 125%.

The guidelines are more liberal if the LTV is at least 80% and the current servicer is offering the program. Under this scenario a customer with a FICO score as low as 620 can be refinanced into a new GSE loan.

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