FHFA: refinance volume is slowing

The Federal Housing Finance Agency (FHFA) reported this week that more than 356,709 refinances were completed in the second quarter of 2017, compared with 510,074 in the first quarter. FHFA’s second quarter Refinance Report also shows that more than 9,700 loans were refinanced through the Home Affordable Refinance Program, bringing the total number of HARP refinances to 3,470,804 since inception of the program in 2009.

According to new data released today, 143,051 borrowers could still benefit financially from a HARP refinance as of March 31, 2017. These borrowers meet the basic HARP eligibility requirements, have a remaining balance of $50,000 or more on their mortgage, have a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates. These borrowers could save, on average, $2,400 per year by refinancing their mortgage through HARP.

Click here to view a U.S. map showing the number of HARP-eligible borrowers by state, Metropolitan Statistical Area, county and zip code. Of interest: only 60 loans are eligible in the Greater Greenville area, while nearly 1,000 loans are eligible in the Columbia area.

Also in the Refinance Report:

• Through the second quarter of 2017, 25 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
• Nine states and one U.S. territory accounted for more than 60 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance: Illinois, Florida, Michigan, Ohio, Puerto Rico, New Jersey, Georgia, Pennsylvania, Maryland and New York.
• Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.

FHFA: Refinance Volume Down Slightly in May but Remains Strong

Refinance volume dipped slightly in May from the prior month but remained strong as mortgage rates stayed just above record low levels, according to the Federal Housing Finance Agency’s May 2013 Refinance Report. More than 418,000 refinances took place in May, with nearly 85,000 completed through the Home Affordable Refinance Program (HARP). More than 2.6 million refinances have now been completed through HARP since the program began in April 2009.

Also in the May 2013 report:

• HARP volume represented 20 percent of total refinance volume in May.
• Borrowers with loan-to-value (LTV) ratios greater than 105 percent accounted for 44 percent of the volume of HARP loans through May.
• The number of completed HARP refinances for deeply underwater borrowers continued to represent a significant portion of total HARP volume. In May 2013, 19 percent of the loans refinanced through HARP had a LTV ratio greater than 125 percent.
• Year-to-date through May, eighteen percent of HARP refinances for underwater borrowers were for 15- and 20-year mortgages.
• Year-to-date through May, HARP refinances represented 60 percent of total refinances in Nevada and 51 percent of total refinances in Florida, more than double the 21 percent of total refinances nationwide over the same period.
• The top five states with the highest number of HARP loans since the inception of the program through May include: California (368,905), Florida (235,223), Michigan (178,035), Illinois (175,521), and Arizona (130,894).

To read the complete Refinance Report at FHFA.gov, click here.

FHFA: Refinance Volume Remains High In March

The Federal Housing Finance Agency (FHFA) today released its March 2013 Refinance Report, which shows that refinance volumes remained high as mortgage rates rose slightly but stayed near historic low levels. Nearly 462,000 refinances took place in March, with nearly 100,000 completed through the Home Affordable Refinance Program (HARP). This brings the number of total HARP refinances to more than 2.4 million since the program’s inception in April 2009.

In the first quarter of 2013, there were nearly 1.4 million refinances on Fannie Mae and Freddie Mac loans. Close to 300,000 or roughly 22 percent of those refinances were through HARP. The pace of HARP refinances through the first quarter strongly mirrors the fourth quarter of 2012, when HARP refinances constituted 22 percent of total refinances.

Also in the March 2013 report:

• Borrowers with loan-to-value (LTV) ratios greater than 105 percent accounted for 45 percent of the volume of HARP loans through the first quarter.
• The number of completed HARP refinances for deeply underwater borrowers continued to represent a significant portion of total HARP volume. In March, 22 percent of the loans refinanced through HARP had a LTV ratio greater than 125 percent.
• Year to date, HARP refinances represented 63 percent of total refinances in Nevada and 53 percent of total refinances in Florida.
• Through March, underwater borrowers represented 64 percent or more of total HARP volume in Nevada, Arizona and Florida.
• Also in March, 17 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
• From the inception of HARP through the first quarter, the total number of HARP loans by state include: California (343,303), Florida (212,755), Michigan (164,866), Illinois (164,492), and Arizona (121,989).

Read the complete Refinance Report at FHFA.gov by clicking here.

FHFA: Refinance Volume Continues Strong Pace Through February

Low Mortgage Rates Contribute to HARP Success

The Federal Housing Finance Agency (FHFA) today released its February 2013 Refinance Report, which shows that refinance volumes remained high as mortgage rates hovered near historic low levels. More than 463,000 refinances took place in February, with 97,738 completed through the Home Affordable Refinance Program (HARP). This brings the number of total HARP refinances to more than 2.3 million since the program’s inception in April 2009.

FHFA recently announced it has extended HARP for two more years and will soon launch a nationwide campaign to educate and encourage homeowners to learn about HARP eligibility requirements. HARP was set to expire Dec. 31 of this year.

Also in the February 2013 report:

• Borrowers with loan-to-value (LTV) ratios greater than 105 percent accounted for 45percent of the volume of HARP loans.
• The number of completed HARP refinances for deeply underwater borrowers continued to represent a significant portion of total HARP volume. In February, 22 percent of the loans refinanced through HARP had a LTV ratio greater than 125 percent.
• Through February, underwater borrowers represented 65 percent or more of total HARP volume in Nevada, Arizona and Florida.
• Also in February, 18 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
• The total number of HARP loans by state include: California (329,707), Florida (200,332), Illinois (158,822), Michigan (158,462), and Arizona (117,149).

Link to Refinance Report
Link to FHFA announcement: HARP Extended to 2015

FHFA: Refinance Volume Remains Strong Through January

Underwater Borrowers Continue to Benefit from HARP

The Federal Housing Finance Agency (FHFA) today released its January 2013 Refinance Report, which shows that refinance volume remained high through the first month of this year. There were nearly 470,000 refinances in January, with roughly 97,600 completed through the Home Affordable Refinance Program (HARP). This brings total HARP refinances to more than 2.2 millionsince the program’s inception in April 2009.

Also in the January 2013 report:

• Borrowers in January with loan-to-value ratios greater than 105 percent accounted for 47 percent of the HARP refinance volume.
• The number of completed HARP refinances for deeply underwater borrowers continued to represent a significant portion of total HARP volume. In January, 25 percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.
• HARP continued to account for a substantial portion of total refinance volume in certain states. In January, 66 percent of total refinances in Nevada and 56 percent of total refinances in Florida were through HARP.
• Also in January, 18 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.

Click here to read the Refinance Report at FHFA.gov.

FHFA Extends HARP to 2015

The Federal Housing Finance Agency (FHFA) today directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013.

“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”

In addition, FHFA will soon launch a nationwide campaign to inform homeowners about HARP. This campaign will educate consumers about HARP and its eligibility requirements and motivate them to explore their options and utilize HARP before the program ends. HARP is uniquely designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.

To be eligible for a HARP refinance homeowners must meet the following criteria:

• The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
• The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
• The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
• The current loan-to-value (LTV) ratio must be greater than 80 percent.
• The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.  

Borrowers should contact their existing lender or any other mortgage lender offering HARP  refinances. Check here to see if your loan is owned by Fannie Mae or Freddie Mac.  Fannie Mae and Freddie Mac have helped approximately 2.2 million borrowers refinance their homes since HARP was introduced by FHFA and the U.S. Department of the Treasury in April 2009.

Link to FHFA Refinance Report

Frequently Asked Questions
Home Affordable Refinance Program (HARP) Extended to 2015

Overview of the Home Affordable Refinance Program (HARP)
The Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury introduced the Home Affordable Refinance Program (HARP) in early 2009 as part of the Making Home Affordable program. HARP provides borrowers, who may not otherwise qualify for a refinance because of declining home values or reduced access to mortgage insurance, the ability to refinance their mortgage into a lower interest rate and/or more stable mortgage product.

Why is FHFA extending the deadline?
FHFA determined that extending the program now will provide borrowers additional opportunities to refinance, give clear guidance to lenders, and reduce losses for Fannie Mae, Freddie Mac and taxpayers.

How many homeowners have been helped by HARP since its inception?
As of January 2013, more than 2.2 million borrowers refinanced through HARP since its
inception in April 2009.

How many additional homeowners does FHFA estimate will be able to participate in HARP?
HARP has been successful thus far, with nearly 2.2 million borrowers participating in the program, and FHFA will soon be implementing a nationwide public relations campaign to educate consumers about HARP. The goal of this campaign is to reach as many eligible borrowers as possible and inform them of the value of refinancing under HARP and to motivate them to explore their options and utilize HARP before the program expires. So while we can’t provide hard estimates, we are hopeful that a substantial number of eligible borrowers will participate in the program going forward.

Are there any other changes to HARP?
Aside from extending the deadline, FHFA is not announcing any substantive changes to HARP or its eligibility criteria today.

Are borrowers whose loans are not owned or guaranteed by Freddie Mac or Fannie Mae eligible?
Neither FHFA nor Fannie Mae or Freddie Mac has the legal authority to extend HARP to borrowers whose mortgages are not owned or guaranteed by Fannie Mae or Freddie Mac.

Is there a maximum loan-to-value (LTV) ratio for HARP?
There is no maximum LTV limit for borrower eligibility. If the borrower refinances under HARP and their new loan is a fixed rate mortgage, there is no maximum LTV. If the borrower refinances and their new loan is an adjustable rate mortgage, their LTV may not be above 105 percent.

Is HARP the only refinance program available to borrowers?
HARP is only one of several refinancing options available to homeowners and is unique in that it is the only refinance program that enables borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits.

How can I tell whether companies promising to help borrowers get HARP loans are legitimate?
Borrowers do not need to use third-party companies that advertise themselves as “mortgage experts” or “foreclosure specialists” to apply for a HARP loan. Before calling such companies borrowers should talk first with their mortgage lender.

Are mortgages on condominiums and investment properties eligible for refinance under HARP?
Yes.

What do borrowers need to do to take advantage of HARP?
The first step for the borrower is to learn if his or her mortgage is owned or guaranteed by Freddie Mac or Fannie Mae. The next step is to contact the borrower’s existing lender or participating lenders offering HARP refinances. Check here to see if your loan is owned by Fannie Mae or Freddie Mac.