Nearly three-quarters of a million households have refinanced
through the Home Affordable Refinancing Program since the program's parameters
were changed late last year according to a report released Wednesday by the
Federal Housing Finance Agency. The
program is on track to serve nearly twice the number of homeowners as it did in
2011 under the old program rules.
While refinancing overall was up by over 9,000 loans in
September compared to August, the number of HARP loans declined. The report says that 90,789 homeowners
refinanced through HARP in September compared to 98,885 in August. The September figure is 21 percent of the
total of 431,342 refinances done through the two GSEs during that period while
HARP had a 23.5 percent share of refinancing in August. Fannie
Mae was responsible for 52,975 of the September HARP total and Freddie Mac
refinanced 37,814 loans.
About half of the HARP loans made in September (45,633) had
LTV ratios between 80 to 105 percent with the remainder close to evenly divided
between loans with LTVs between 105 percent and 125 percent (21,930) and those
with LTVs over 125 percent (23,226).
Since the cap was removed 141,696 borrowers have refinanced loans with
LTVs over 125 percent.
One of the revisions made to the HARP program in 2011 was to
eliminate some risk-based fees for borrowers who refinance into shorter term
mortgages. In September 19 percent of
HARP borrowers took advantage of this incentive by refinancing into 15 or 20
year loans compared to 18 percent in August.