LPS: Refinancing/HARP Boom Still Has Farther to Run
Lender Processing Services estimates that 2.6 million Fannie Mae and Freddie Mac loans may still be eligible for refinancing via the Home Affordable Refinance Program.
“We see significant further growth” in the HARP program, said LPS senior vice president Herb Blecher.
Approximately 2.6 million loans fit the general HARP requirements and 50% have prime credit scores of 720 or above, including 670,000 with interest rates above 6%.
Launched in April 2009, GSE seller/servicers have completed 1.8 million HARP refinancings on mortgages with loan-to-value ratios above 80%.
Since the introduction of the HARP 2.0 program last January, 790,600 HARP refinances have been complete, including 160,400 GSE loans with LTVs above 125%.
With refinancing activity at historic highs, the Jacksonville, Fla., vendor of mortgage data and analytics estimates that another 10 million mortgages may be eligible for traditional refinancing.
“Potential payment reduction opportunity exceeds 30% at current market rates,” LPS said.