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Fannie's First Home Affordable Refinance Loan Purchased From Dubuque Bank

""Lenders One Mortgage Cooperative"":http://www.lendersone.com, a national alliance of mortgage bankers, announced Tuesday that one of its members - Iowa-based ""Dubuque Bank & Trust"":http://www.dubuquebank.com (DB&T) - was the first institution in the country to sell a Refi Plus loan to Fannie Mae under the administration's Home Affordable Refinance Program.
DB&T, a subsidiary of Heartland Financial USA Inc., finalized the sale of the refinanced mortgage to the GSE on April 1. The bank said as it anticipated the availability of Refi Plus and the launch of the federal program, it sought to deliver a specific loan, knowing that it would qualify.
DB&T said it is using the government-led refinance program to help borrowers remain in their homes by reducing their monthly payments and/or refinancing into a fixed-rate loan product. The management team at the bank added that it ""appreciates the benefits of the Refi Plus program, which allow financial institutions to better retain mortgage customers through an effective, quick refinance option.""
Tom Goric, VP at Dubuque Bank & Trust, added, ""The Refi Plus program allows more efficient, cost-effective refinancing for borrowers. Loans are delivered faster and at lower cost, as the new guidelines broaden the scope of who can be helped in today’s harsh economic climate.""
The new ""Refi Plus solution"":https://www.efanniemae.com/sf/mha/index.jsp is designed to streamline the refinance process of existing Fannie Mae-funded mortgage loans. The goal is to extend the option of refinancing to more struggling homeowners. To achieve this, Fannie Mae has loosened refinance requirements, such as lowering the acceptable credit score, reducing documentation of income, and in some cases waiving the requirement of an appraisal.
Scott Stern, CEO of the Lenders One alliance of more than 125 mortgage bankers originating $40 billion in home loans annually, commented, ""As part of recent initiatives to help alleviate foreclosures, the Refi Plus program allows lenders to expand their refinance opportunities and preserve homeownership at a greater rate. This is both an outstanding achievement and a great civic-minded act.""
""Dubuque Bank & Trust"":http://www.dubuquebank.com, with more than $1 billion in assets, serves thousands of customers in Iowa, Illinois, Wisconsin, and other states. It is among Iowa’s 10 largest banking institutions.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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