Categorized | Finance and Mortgage

Regulators Strongly Consider Greater Mortgage Support

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In an effort to help rebuild the economy, and vastly improve the real estate market, United States regulators for Fannie Mae and Freddie Mac are contemplating multiple ways to make refinancing mortgage loans easier. One of the plans being most widely considered is the overall growth of the Home Affordable Refinance Program, or HARP. The HARP program has assisted far fewer than originally intended.

A new initiative regarding the HARP program may ease restrictions, so as to reach the originally planned number of homeowners. However, the Federal Housing Finance Agency has not yet confirmed that they will agree to the expansion of the HARP program, though they are not ruling out the possibility.

Currently, borrowers are unable to refinance their mortgages if they are greater than one hundred and twenty-five percent of the value of their home. The new initiative would lift that limit. It is that limit that has made it impossible for most homeowners to refinance their current mortgage despite record low mortgage loan rates.

The purpose of the overall initiative is to cut monthly payments for homeowners, and thus, allow for improved spending in other industries. An independent research group believes that such a plan would help borrowers save as much as seven billion dollars in the first year alone.

While the initiative seems to be overly positive, and would likely provide the economy with a much-needed boost, some regulators are not entirely certain that it will achieve the desired results. However, most regulators believe that the plan proposed is a good start, and may be highly effective with a bit of deliberation.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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