The Federal Housing Finance Agency (FHFA) has extended the Home Affordable Refinance Program (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, through June 30, 2011. The program had been set to expire on June 10 of this year.
‘FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed,’ says Ed DeMarco, FHFA's acting director. ‘Accordingly, to support and promote market stability, and to encourage lenders and other mortgage market participants to fully adopt the HARP program – including the implementation of the October 2009 expansion of loan-to-value ratios (LTVs) to 125 percent – FHFA is authorizing the extension of HARP until June 30, 2011.’
In February, several trade groups, including the Mortgage Bankers Association and the American Bankers Association, sent a letter to DeMarco and Treasury Secretary Timothy Geithner urging HARP's extension. In the letter, the groups pressed for an extension prior to March 10 so as to avoid market disruptions..
In 2009, Fannie Mae and Freddie Mac purchased or guaranteed more than 4 million refinanced mortgages. Of this total, 190,180 were HARP refinances with LTVs between 80% and 125%.
SOURCE: Federal Housing Finance Agency