FHFA working with White House to help troubled homeowners refinance

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Source: The Washington Post

The federal agency that oversees taxpayer-backed mortgage giants Fannie Mae and Freddie Mac said Friday it is working with the White House to explore ways to help troubled homeowners take advantage of historically low interest rates.

The announcement by Edward DeMarco, acting director of the Federal Housing Finance Agency, came a day after President Obama referenced the effort in an address to Congress, saying his administration would “work with federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4 percent.”

DeMarco said in a statement Friday that his agency would begin by “reevaluating” an existing initiative in order to “determine if there are ways to extend the benefits of this refinance product to more borrowers.”

The Home Affordable Refinance Program, or HARP, currently covers mortgages that were originated prior to June 2009 and backed by Fannie and Freddie. To be eligible, borrowers must be current on their mortgage payments, and their loan must not exceed 125 percent of the value of the home.

Read more: http://www.washingtonpost.com/business/economy/fhfa-working-with-white-house-to-help-troubled-homeowners-refinance/2011/09/09/gIQARr77FK_story.html