HARP Extended & New High LTV Refinance Options to Come!

The Federal Housing Finance Agency (FHFA) has announced that the Home Affordable Refinance Program (HARP) will be extended to September 30, 2017, continuing to provide liquidity to support eligible borrowers.
Fannie Mae and Freddie Mac will introduce new high loan-to-value (LTV) ratio same-investor refinance options, scheduled to be available in October 2017. The new options will be for existing loans with LTV ratios exceeding the maximum otherwise allowed, supporting borrowers who are making their payments but are constrained by a high LTV from refinancing. Under the new options, as with HARP, the refinance must provide one of these borrower benefits:

• Reduced monthly payment
• Lower interest rate
• Shorter amortization term
• More stable mortgage product, such as moving from an adjustable-rate mortgage to fixed-rate mortgage

Refer to the Selling Notice for more information on the extension of DU Refi Plus™ and Refi Plus™. To preview Fannie Mae’s new high LTV refinance option, read the fact sheet; detailed requirements will be provided in a later communication. Please contact me if you have any questions about the HARP extension or the new high LTV refi option coming next year.