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Sunday, October 23, 2011

WSJ: Details on New FHFA Refinance Program, No LTV Limit, Eliminate appraisals

by Calculated Risk on 10/23/2011 11:51:00 PM

From Nick Timiraos at the WSJ: Home Lending Revamp Planned

Federal regulators on Monday plan to unveil a major overhaul of an under-used mortgage-refinance program ... The overhaul will, among other things, let borrowers refinance regardless of how far their homes have fallen in value ...

The plan will streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as homeowners are current on their mortgage payments ... Fannie and Freddie have also agreed to waive some fees that made refinancing less attractive for some.
Pricing details won't be published until mid-November, and lenders could begin refinancing loans under the retooled program as soon as Dec. 1 ... Loans that exceed the current limit of 125% of the property's value won't be able to participate until early next year. The program's expiration date ... will be extended through 2013. HARP is only open to loans that Fannie and Freddie guaranteed as of June 2009.
This is more aggressive than I expected and there will probably be a significant pickup in refinancing. This only applies to loans that are current and guaranteed by Fannie and Freddie.

Schedule for Week of Oct 23rd
Summary for Week ending Oct 21st