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The Federal Housing Finance Agency has removed several
key barriers to the Home Affordable Refinance Program
(HARP) in order to allow more underwater borrowers move
into lower-rate mortgages.
HARP, which launched in March 2009, helped 893,000 Fannie
Mae and Freddie Mac borrowers with loan-to-value ratios
between 80% and 125% refinance. But roughly 7% of those
held LTVs above 105%.
In order to assist more of the estimated 11 million
borrowers who owe more on their mortgage than their home
is worth, the FHFA removed the 125% LTV ceiling on the
program.
This new program to help borrowers currently "underwater" with
home values, like most government programs, will be limited
in time and funds available.
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