Fannie Mae and Freddie Mac refinanced more than 2.9 million mortgage loans in 2009 through July of this year, including almost 1.9 million since the Home Affordable Refinance Program (HARP) began in April, according to a report from the Federal Housing Finance Agency.
‘This report shows that more than 190,000 homeowners that are current in their mortgage payments have been assisted through the GSE streamlined refinance process,’ said outgoing FHFA Director James B. Lockhart.
The average rate reduction on loans that have been refinanced through the government-sponsored enterprises' streamlined process is 1.3%.
Through July, Fannie Mae had refinanced 1.7 million loans. Of that total, approximately 138,000 loans were refinanced under the company's DU Refi Plus and Refi Plus flexibilities that were put in place to support HARP. Approximately 32,000 of the loans refinanced through July had loan-to-value ratios (LTVs) between 80% and 105%.
Freddie Mac refinanced 1.2 million loans through July, including approximately 53,000 loans that carried LTVs in the 80%-105% range.
HARP's recently heightened LTV ceiling of 125% will come into effect in coming months, the FHFA says. Fannie Mae will begin accepting deliveries of refinanced loans with LTVs over 105% up to 125% as of Sept,1. Freddie Mac's start date is Oct. 1.