FHFA Planning for Post-HARP Market – NMP Skip to main content

FHFA Planning for Post-HARP Market

Mar 22, 2016
A major wave of refinancing helped push mortgage applications upward with a vengeance, according to data from the Mortgage Bankers Association (MBA) for the week ending March 29

With the Home Affordable Refinance Program (HARP) set to expire at the end of the year, Federal Housing Finance Agency (FHFA) Director Mel Watt is seeking to lay the foundation of a market that will not leave at-risk homeowners in difficult financial situations.

Speaking today in Washington, D.C., at the Public Policy Luncheon sponsored by Women in Housing and Finance, Watt noted that his agency and the government-sponsored enterprises were working with to lenders, mortgage insurers, and investors to study a post-HARP endeavor that would accommodate high loan-to-value (LTV) borrowers.

“During our outreach discussions, we are reminding industry participants that borrowers who previously completed a HARP refinance will not be eligible to refinance under a new high-LTV program,” Watt said. “When we conclude our outreach, the enterprises will publish an announcement that reflects the eligibility guidelines and product terms that we believe will meet the needs of high-LTV borrowers in the future.”

But with nine months to go before HARP runs its course, Watt stated that the FHFA would work ensure borrowers can take full advantage of that program’s benefits.

“Despite extensive outreach efforts by the enterprises and their lender partners, over 360,000 borrowers nationwide still remain both eligible for HARP and able to benefit financially from HARP,” said Watt. “FHFA and the enterprises are attempting new methods to raise borrower awareness through social media and Webinars, and we are asking stakeholders to help us get the word out about HARP before the end of the year.”

Also during his speech, Watt briefly alluded to the once-contentious but now barely-mentioned subject of principal reduction with a promise that he would decide in the next 30 days whether it was officially a non-issue or if there was a "win-win" approach to this strategy for future policy planning. "So, while I don't have an answer today, I invite you to stay tuned for more on this in the near future," he said. "As always, our decision and the reasons for making it will be documented and transparent." 

About the author
Published
Mar 22, 2016
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026