The volume of HARP refinancings has been declining for several months and Fannie Mae says it expects to see that trend continue going forward.
The GSE cites higher interest rates for the decline and a “decrease in the population of borrowers with loans that have high LTV ratios who are willing to refinance and would benefit from [a HARP] refinancing.”
Fannie Mae acquired $73 billion in Home Affordable Refinance Program loans during the first three quarters of this year, which is off the full-year pace of $127 billion in 2012.
One-third of those 2013
The securities filing points out that refinancings and rising house prices have reduced the pool of likely HARP candidates. The percentage of Fannie-guaranteed loans with LTVs above 100% fell to 8% at the end of September, down from 14% at yearend 2012.
The quarterly report also points out the HARP homeowners have pretty high FICO credit scores.
The weighted average credit score for HARP borrowers that refinanced this year is 724, compared to 759 for borrowers taking out standard GSE single-family loans.
