More Evidence That HARP 2.0 Revisions Revitalized The Program

by devteam May 8th, 2013 | Share

Refinancingrnvolume remained high in February with more than 463,000 transactions completed</bthrough Freddie Mac and Fannie Mae (the GSEs) during the month, down onlyrnslightly from 469,953 in January.  Of thernFebruary total 294,303 were purchased or guaranteed by Fannie Mae and 169,501rnby Freddie Mac.  In February 2012rnrefinances totaled 335,031.  </p

The FederalrnHousing Finance Agency (FHFA) said in its Refinance Report Tuesday thatrn97,738 or 21 percent of the refinances were completed through the Home Affordable Refinance Program (HARP).   Both the number of HARP refinances and thernmarket share were virtually unchanged from January.  </p

Sincernthe HARP program was begun in April 2009 more than 2.3 million homeowners have usedrnit to refinance high loan-to-value (LTV) ratio or underwater mortgages.  Nearly 1.3 million of those refinances haverntaken place since the program was substantially revamped in late 2011. </p


Borrowersrnwith LTV ratios greater than 105 percent accounted for 45 percent of the HARPrnloans in February and 22 percent had LTV ratios over 125 percent.  The latter group of homeowners were notrneligible for the program before the LTV cap was eliminated by those 2011rnprogram revisions.  </p


Another revision to the program created incentives forrnborrowers to refinance into shorter term mortgages in order to rebuild theirrnequity more quickly.  In February 18rnpercent of HARP refinances were for shorter-term 15- and 20-year mortgages,rntwice the percentage as just before the program changes.</p


FHFA recently announced it has extended HARP for two morernyears and will soon launch a nationwide campaign to educate and encouragernhomeowners to learn about HARP eligibility requirements. HARP was set to expirernDec. 31 of this year.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...