NEWS out about HARP: Struggling homeowners take r
Post# of 1629
Posted On: 04/24/2013 8:57:45 PM
NEWS out about HARP : Struggling homeowners take record share of refinancing
April 24, 2013, 11:39 AM
Struggling homeowners who have received help from a federal refinancing program took a record share of refinancing applications in the most recent weekly data, according to a report released Wednesday.
The share of refinance applications made up by Home Affordable Refinance Program loans nudged up to 32% in the week ending April 19 from 31% in the prior week, according to the Washington-based Mortgage Bankers Association. HARP’s share in the most recent weekly data is the highest in the series, which goes back to February 2012.
HARP helps refinancing for borrowers whose mortgages have high loan -to-value ratios, including those that are underwater, meaning that they owe more on their mortgage than the home is worth. To participate, mortgages must be owned or guaranteed by federally controlled loan buyers Freddie Mac FMCC or Fannie Mae FNMA , and have been acquired by May 31, 2009. Also, borrowers must be current on payments.
Looking broadly at mortgages, refinancing makes up the lion’s share of activity, accounting for 75% of total mortgage applications. Wells Fargo WFC +0.59% is a top refinancer, with about 25% of the market share, followed by Chase JPM +1.16% , with about 10.5% of the market, according to Inside Mortgage Finance, a publication following industry trends.
Borrowers , struggling and otherwise, are taking advantage of ongoing low interest rates to lower their monthly housing payments. Homeowners are also getting help from a broadly strengthening market and rising prices. A cumulative home-price gain of 20% over the next several years is expected to lead to most mortgages regaining positive equity, according to Fannie Mae commentary released Wednesday.
“The speed of the transition of these underwater loans to positive equity positions is expected to vary regionally, depending on the severity of their underwater conditions (i.e., their LTV) and the pace of home price gains in each area,” wrote Orawin Velz, Fannie’s economic and strategic research director.
To help more troubled borrowers take advantage of low interest rates , Fannie and Freddie’s regulator recently announced a two-year extension for HARP. The program had had been slated to expire at the end of this year, and will now run through 2015.
–Ruth Mantell
Follow Ruth on Twitter @ruthmantell
Follow The Tell blog @thetellblog
http://blogs.marketwatch.com/thetell/2013/04/...financing/
THIS NEWS IS ANOTHER PROOF THAT WINDING DOWN THEORY HAS NO LEGS. BECAUSE HARP PROGRAM EXTENDED UNTIL 2015.
April 24, 2013, 11:39 AM
Struggling homeowners who have received help from a federal refinancing program took a record share of refinancing applications in the most recent weekly data, according to a report released Wednesday.
The share of refinance applications made up by Home Affordable Refinance Program loans nudged up to 32% in the week ending April 19 from 31% in the prior week, according to the Washington-based Mortgage Bankers Association. HARP’s share in the most recent weekly data is the highest in the series, which goes back to February 2012.
HARP helps refinancing for borrowers whose mortgages have high loan -to-value ratios, including those that are underwater, meaning that they owe more on their mortgage than the home is worth. To participate, mortgages must be owned or guaranteed by federally controlled loan buyers Freddie Mac FMCC or Fannie Mae FNMA , and have been acquired by May 31, 2009. Also, borrowers must be current on payments.
Looking broadly at mortgages, refinancing makes up the lion’s share of activity, accounting for 75% of total mortgage applications. Wells Fargo WFC +0.59% is a top refinancer, with about 25% of the market share, followed by Chase JPM +1.16% , with about 10.5% of the market, according to Inside Mortgage Finance, a publication following industry trends.
Borrowers , struggling and otherwise, are taking advantage of ongoing low interest rates to lower their monthly housing payments. Homeowners are also getting help from a broadly strengthening market and rising prices. A cumulative home-price gain of 20% over the next several years is expected to lead to most mortgages regaining positive equity, according to Fannie Mae commentary released Wednesday.
“The speed of the transition of these underwater loans to positive equity positions is expected to vary regionally, depending on the severity of their underwater conditions (i.e., their LTV) and the pace of home price gains in each area,” wrote Orawin Velz, Fannie’s economic and strategic research director.
To help more troubled borrowers take advantage of low interest rates , Fannie and Freddie’s regulator recently announced a two-year extension for HARP. The program had had been slated to expire at the end of this year, and will now run through 2015.
–Ruth Mantell
Follow Ruth on Twitter @ruthmantell
Follow The Tell blog @thetellblog
http://blogs.marketwatch.com/thetell/2013/04/...financing/
THIS NEWS IS ANOTHER PROOF THAT WINDING DOWN THEORY HAS NO LEGS. BECAUSE HARP PROGRAM EXTENDED UNTIL 2015.
(0)
(0)Fannie Mae (FNMA) Stock Research Links
Scroll down for more posts ▼