Fannie Mae Announces New Streamlined Refinance Program for High Loan-to-Value Borrowers to be Available in October 2017
As recently announced by the Federal Housing Finance Agency (FHFA), the Home Affordable Refinance Program (HARP) will be extended to September 30, 2017, continuing to provide liquidity to support eligible borrowers.
Corresponding to the conclusion of HARP, Fannie Mae, in coordination with 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
Borrowers can refinance, using the high LTV refinance option, more than once as long as all other requirements, including seasoning and payment history, are met. Additional program details are available here (PDF). These loans will be eligible for securitization utilizing existing Fannie Mae pool prefixes (PDF).
For any questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 2 or by e-mail.
Originally published: 8/26/16