This story appeared in Bank Digest
The Federal Housing Finance Agency has announced modifications to the streamlined refinance program for borrowers with high loan-to-value (LTV) ratios. In August 2016, FHFA announced that Fannie Mae and Freddie Mac (the Enterprises) would implement a High LTV Streamlined Refinance program to provide much-needed liquidity for borrowers who are current on their mortgage but are unable to refinance because their loans have LTV ratios that exceed the Enterprises' maximum limits. In order to preserve the objectives of the Enterprises' credit risk transfer program, FHFA is establishing an eligibility date which makes the program available for loans originated on or after Oct. 1, 2017. In addition, to ensure that high LTV borrowers who are eligible for HARP continue to have a refinance option, FHFA is also directing the Enterprises to extend the Home Affordable Refinance Program through Dec. 31, 2018.