Record one-third of GSE refinancings close via HARP
One of every three refinancings through Fannie Mae and Freddie Mac closed via the Home Affordable Refinance Program, the highest number since the program’s inception in April 2009.
Through June, Fannie and Freddie refinanced 422,969 loans via HARP in 2012. The total is more than all of the 400,024 HARP refinances performed 2011.
HARP refinancings of loans-to-value greater than 125% surged in June to more than 40% of HARP volume, according to the Federal Housing Finance Agency. Lenders began selling government-sponsored enterprise securities containing those types of loans on June 1.
The FHFA attributed the continued increase in HARP volume to record-low mortgage rates and program enhancements such as the removal of the LTV ceiling for borrowers who refinance into fixed-rate loans and the elimination or lowering of fees for certain borrowers.
About 1.4 million mortgages refinanced through HARP since the program’s inception. Click on the chart below for a detailed breakout.
More than two-thirds of borrowers in states hard-hit by the housing downturn — Nevada, Arizona and Florida — refinanced through HARP in June, compared with 33% nationwide. In those states, underwater borrowers with LTVs greater than 105% represented more than 80% of HARP volume in June.