Fannie Mae

8 Valuable Rights You Might Lose When You Refinance Student Loans

Fannie Mae, the nation’s largest buyer and guarantor of mortgage loans, made news recently when it announced it would sweeten the deal for folks who want to refinance their mortgage to pay off student loan debt. Fannie Mae works with 1,800 lenders nationwide, so their rule change affects many homeowners. At the same time, newer financial companies that target millennials have been pushing student loan refinances as a way to save money and simplify life.

Fannie Mae’s change will make it more affordable for graduates — or parents — to use home equity to pay off student loans by waiving the usual extra charge for taking out cash when you refinance a home. With mortgage interest rates still at historic lows, this could indeed be an opportunity for young adults with high-rate student loans to reduce their monthly payments. But proceed with caution.

If you have a private student loan, you probably have nothing to lose by converting it into a mortgage, personal loan, or other consolidation loan. But if you have a federal loan, you should be more cautious about making changes. You may not realize you’d be losing these protections and options when you give up your federal student loan.

1. Deferment

If you lose your job or are unable to find a job after graduation, you may qualify for a deferment, which halts your loan payments until you’re in a better position to pay. With certain federal loans, the government will even pay the interest during deferment.

LendingHome Sets Stage to Accelerate Next Phase of Business Growth

Gains Fannie Mae Seller, Servicer Approval to Expand Consumer Home Loans;

Hires Mortgage Industry Veteran Robert Stiles as Chief Financial Officer


LendingHome, the largest, fastest-growing mortgage marketplace lender, today announced two new business developments that will enable the company to take its business to the next level. LendingHome has gained Fannie Mae seller and servicer approval, which will allow LendingHome to expand its consumer home financing business and better serve its customers. Additionally, LendingHome named Robert Stiles, former CFO of Nationstar Mortgage, as its new Chief Financial Officer.

This Smart News Release features multimedia. View the full release here:

Robert Stiles, CFO of LendingHome (Photo: Business Wire)
Robert Stiles, CFO of LendingHome (Photo: Business Wire)

Fannie Mae Seller & Servicer

As one of the largest buyers of conforming home loans, Fannie Mae’s approval of LendingHome as a seller and servicer will enable the expansion of its home financing business and the delivery of better outcomes to its customers. By working directly with Fannie Mae, LendingHome can streamline its operations and offer better loan pricing to its customers. At the same time, LendingHome can retain the servicing of its customers in-house so that they can rely on LendingHome as their one trusted advisor throughout the life of their loan, benefitting from a true end-to-end mortgage experience.

“Passing Fannie Mae’s stringent approval guidelines is no small feat, especially for a young company that started lending only three years ago,” said Matt Humphrey, co-founder and CEO of LendingHome. “This is a testament to LendingHome’s financial strength, leading ground-up technology platform, and the quality of our processes from end-to-end.”

“LendingHome focuses on using technology innovation to create efficiencies and deliver…