Fannie Mae and Freddie Mac seller/servicers completed nearly 97,600 HARP refinancings in January, up 28% from the prior month.
“Borrowers in January with loan-to-value ratios greater than 105% accounted for 47%” of HARP refinancings,” the Federal Housing Finance Agency said in releasing the monthly
Under the Home Affordable Refinancing Program, the GSEs refinanced 21,860 borrowers with LTVs above 105% and up to 125% and another 24,300 loans with LTVs above 125%. In January, 25% of HARP loans had LTVs above 125%.
Fannie said in its 2012 annual report that the average LTV ratio of its HARP loans is 111% and the weighted average FICO score is 738.
HARP loans may not perform as well as other loans purchased since 2009, Fannie says in its annual securities filing. “However, we expect these loans will perform better than the loans they replace because HARP loans reduce the borrowers’ payments and/or provide more stable terms than the borrowers’ old loans.”
HARP refis represented 21% of all GSE refinancings in January. And in some states they represent a much higher percentage. In Nevada, it is 66% of refinancings, 56% in Florida and 43% in Georgia.
