HARP Remains a Benefit to Underwater Borrowers

The Federal Housing Finance Agency (FHFA) released its January 2013 Refinance Report, which shows that refinance volume remained high through the first month of this year. There were nearly 470,000 refinances in January, with roughly 97,600 completed through the Home Affordable Refinance Program (HARP). This brings total HARP refinances to more than 2.2 million since the program’s inception in April 2009. Also in the January 2013 report: ►Borrowers in January with loan-to-value ratios greater than 105 percent accounted for 47 percent of the HARP refinance volume. ►The number of completed HARP refinances for deeply underwater borrowers continued to represent a significant portion of total HARP volume. In January, 25 percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent. ►HARP continued to account for a substantial portion of total refinance volume in certain states. In January, 66 percent of total refinances in Nevada and 56 percent of total refinances in Florida were through HARP. ►Also in January, 18 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.