More than 519,000 loans were refinanced through Fannie Mae and Freddie Mac under the Home Affordable Refinance Program (HARP) since the beginning of this year, according to new data from the Federal Housing Finance Agency (FHFA).
‘When we announced additional program changes to HARP last fall, we were cautiously optimistic that the changes would double or more the number of HARP refinances,’ says Acting Director Edward J. DeMarco. ‘With more than half-a-million homeowners taking advantage of the program in the first seven months of this year, Fannie Mae and Freddie Mac are on track to meet or surpass our original estimates.’
Last month, HARP refinances represented nearly 60% or more of total refinances in states hard-hit by the housing downturn – Nevada, Arizona and Florida – compared with 27% of total refinances nationwide. Nevada, Arizona and Florida, underwater borrowers with loan-to-value (LTV) ratios greater than 105%, represented more than 70% of HARP volume in July.
The FHFA adds that during June and July, borrowers with LTV ratios greater than 105% accounted for more than half the volume of HARP loans, as lenders began to sell Fannie Mae and Freddie Mac securities containing these loans with LTV ratios greater than 125% as of June 1.