Fannie Mae and Freddie Mac refinanced roughly 3.6 million loans in 2010 with 11% of that volume tied to high LTV loans processed under the Home Affordable Refinance Program, according to new figures released by the Federal Housing Finance Agency.
Via their seller/servicers, the GSEs experienced a late surge in refinancings in 2010 with 1.37 million loans -- or 38% -- coming in the fourth quarter.
A new report from FHFA shows a substantial increase in fourth quarter refis involving high LTV loans under the HARP program, which is designed to refinance loans the GSEs already guarantee. Borrowers are not required to purchase mortgage insurance on HARP loans.
In the fourth quarter, the GSEs completed 131,150 refinancings of conventional loans with LTV ratios greater than 80% (up to 105%.) For all of 2010, Fannie and Freddie completed nearly 403,000 refinancings of loans in the 80% to 105% LTV bracket.
The HARP program also allows the enterprises to refinance loans with LTVs above 105%, up to 125%. Fannie and Freddie completed 28,700 refinancings of these underwater loans last year, including 10,800 in the final quarter.
Since the HARP program was launched in April 2009, GSE lenders have refinanced 30,600 loans in the 105% to 125% bracket.
