In a statement launched Monday, the Federal Housing Finance Agency (FHFA) revealed Fannie Mae and Freddie Mac have gotten to the milestone of three million refinances under the Home Affordable Refinance Program (HARP). HARP allows a borrower with little or no equity to refinance into a loan with a lower interest rate, when it can’t meet standard loan underwriting guidelines.
The three million mark is a significant step in achieving the FHFA’s goal of more comprehensive use of HARP.
“Three million HARP refinances is an important accomplishment and represents real help to families and communities still struggling as a result of the mortgage crisis,” claimed FHFA Director Mel Watt. “We are continuing our efforts to make sure that those who can take advantage of this program have the information they need to do so.”.
In November alone, the GSEs together funded 38,732 HARP refinances, bringing 2013’s year-to-date sum total to 862,892. Out of those, 25,689 were for mortgages with loan-to-value (LTV) ratios between 80 and 105 percent; 7,612 were for loans with 105 to 125 percent LTV, while the rest were for 125+ percent LTV loans.
In addition, FHFA announced it had completed over 3 million foreclosure prevention actions, which include loan modifications, short sales, and other methods.
Since the government’s conservatorship of Fannie Mae and Freddie Mac in 2008, over 18 million mortgages have been refinanced via the GSEs.
Last year, FHFA extended the due date for HARP to December 31, 2015.