Senate Banking Democrats urge FHFA to Allow More REFIS

Recently all twelve Democrats in the Senate Banking Committee pressured the Federal Housing Finance Agency to remove more restrictions to refinancing Fannie Mae and Freddie Mac mortgages.

The FHFA eased a few rules last November under a renewed Home Affordable Refinancing Program. It lifted the loan-to-value cap, specific appraisal requirements, up front loan-level price adjustment fees, and removed some representation-and-warranty risk if the borrower refinances with the same lender.

Last Friday the lawmakers sent a letter requesting more. They suggested the removal of upfront fees when Fannie and Freddie already have the credit risk. They asked for FHFA to make refinancing easier with buyers who have 20% or more in equity on their house. They also wanted to reduce more rep and warranty risk in order to remove disincentives for servicers to refinance.

They explain in their letter that as citizens you all can no onger wait, and as 'elected officials' neither can they.

Around 2,700 mortgages with a loan-to-value ration between 105% and 125% received HARP refinancing in December, and nearly half of the 5,100 such loans refinanced in November.

More than 20,600 with LTV's between 80% and 125% received HARP refinancing which was also down 31% from the previous month. Meanwhile, mortgage rates sank below 4% last week according to Freddie Mac.

Post a Comment