This story appeared in Bank Digest.
Fannie Mae and Freddie Mac (the Enterprises), at the Federal Housing Finance Agency’s direction, will implement a new refinance offering, starting in October 2017, aimed at borrowers with high loan-to-value ratios. According to the FHFA, this offering will provide much-needed liquidity for borrowers who are current on their mortgages but are unable to refinance through traditional programs because their LTV ratio exceeds the Enterprises' maximum limits. Specific eligibility requirements are listed in the agency's news release. The FHFA has also released a "Fannie Fact Sheet" and a "Freddie Fact Sheet" with information on the new refinance option as it pertains to Fannie Mae and Freddie Mac mortgages.
To ensure that high LTV borrowers who are eligible for the Home Affordable Refinance Program will not be without a refinance option while the new refinance offering is being implemented, the FHFA is also directing the Enterprises to extend HARP through Sept. 30, 2017.