The Federal Housing Finance Agency reported Tuesday that total refinancings by Fannie Mae and Freddie Mac seller/servicers fell 8.8% from the first quarter to 1.28 million in the second quarter. HARP refinancings totaled 279,900 in the second quarter, down 8.3% from the first quarter.
But GSE servicers completed 88,375 HARP refis in June as the second quarter closed, up from 84,650 in May.
ďWe expect that if interest rates remain below historical levels, we will continue to acquire a high volume of refinancings under HARP for the programís duration or until there is no longer a large of population of borrowers with loans with high LTV ratios who are willing to refinance and would benefit from refinancing,Ē Fannie Mae said in its 2Q13 earnings report, which was filed with the SEC August 8.†
Fannie also noted refinancings of GSE loans with LTVís above 125% were not permitted until the second quarter of 2012. And Fannie expects to acquire many of those 125%-plus loans before the HARP program expires at yearend 2015. †
Fannie and Freddie refinanced 15,430 borrowers with LTVís above 125% in June, compared to 15,737 in May.†