The Mortgage Bankers Association (MBA) has sent a letter to Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco calling for an extension through 2012 of the Home Affordable Refinance Program (HARP).
HARP allows underwater borrowers whose loans are owned by Fannie Mae and Freddie Mac and who are current on their mortgages to take advantage of the current low interest rates to refinance their loans. The program is currently slated to expire at the end of June, but the MBA wants it to end in December 2012, coinciding with the expiration of the Home Affordable Modification Program.
In the letter, MBA President and CEO John Courson also calls for an increase in the loan-to-value (LTV) limit, a re-evaluation of Fannie Mae and Freddie Mac's Loan Level Price Adjustments, and closer alignment between Freddie Mac and Fannie Mae's separate HARP programs.
Through the third quarter of 2010, Fannie Mae and Freddie Mac refinanced nearly 479,000 loans through HARP, according to FHFA data. Those included nearly 20,000 loans whose LTVs were between 105% and 125%.