Home >> Daily Dose >> Fannie Mae’s HARP Refinances Pile Up
Print This Post Print This Post

Fannie Mae’s HARP Refinances Pile Up

refinanceMore American households are saving money, reducing their interest rates, and stabilizing or shortening their loans by refinancing their mortgage.

Fannie Mae announced Tuesday that it has helped more than two million homeowners refinance their mortgages through the Home Affordable Refinance Program (HARP).

The government-sponsored enterprise found that those that refinanced through HARP tend to save about $200 per month on average on their monthly mortgage payment.

“We have worked to help as many homeowners as possible. HARP gives homeowners an opportunity to refinance their home even if the value of the property has declined significantly,” said Andrew Bon Salle, EVP, Single Family Business, Fannie Mae. “This way they can better manage their financial situations and continue to support their families. The two million household milestone is one we’re proud of at Fannie Mae, but our work is not done. Homeowners who have loans from before 2009 and haven’t refinanced should contact a lender immediately to determine their options.”

HARP was established April 1, 2009 by the U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) to assist homeowners unable to access a refinance because of a decline in their home value due to the crisis. The program is designed to provide these borrowers with an opportunity to refinance by permitting the transfer of existing mortgage insurance to their newly refinanced loan, or by allowing those without mortgage insurance on their previous loan to refinance without obtaining new coverage.

HARP enhancements took effect in 2012 to increase access to the program for responsible borrowers. The program was scheduled to expire on December 31, 2013, and was extended to expire on December 31, 2015. On May 8, 2015, HARP was extended again to expire December 31, 2016 to give approximately tens of thousands of households across the U.S. an opportunity to refinance under HARP, according to Fannie Mae.

"We've helped a half million families take advantage of low rates through HARP,” said Steve Hemperly, Head of Mortgage Originations at Chase. “We've partnered closely with Fannie Mae and others to proactively reach out to homeowners and educate them on the unique benefits of HARP.”

“For those considering home refinancing, a HARP loan is an absolute homerun option,” said Bob Walters, Chief Economist, Quicken Loans. “Even if you’ve previously applied and been turned down, it’s worth exploring again as the program and eligibility guidelines have evolved over the years. The time to act is now, especially while rates remain low. Every day we’re working with homeowners to lower monthly payments, in turn helping them save money and improve their finances."

The FHFA reported in November 2015 that the total number of loans refinanced through HARP took an unexpected turn downward in the third quarter.

According to the FHFA third quarter Refinance Report, a total of 25,824 HARP refinances were completed between July and September, down from the 31,561 refinances completed from April to June. In addition, HARP volume accounted for 5 percent of total refinance volume in the third quarter.

The FHFA reported that 3,359,471 borrowers have refinanced through the HARP program as of the third quarter of 2015.

About Author: Staff Writer

x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.