Fannie Mae and Freddie Mac bought nearly 400,000 refinanced loans in the third quarter, an 82% spike from 2Q, according to new figures released by the Federal Housing Finance Agency.
FHFA noted that low mortgage rates also boosted refinancings of high LTV loans under the GSEs' Home Affordable Refinance Program (HARP) by 35%.
The government sponsored enterprises refinanced nearly 45,000 borrowers with loan-to-value ratios of 80% to 125%, compared to 27,120 in the second quarter.
HARP refinancings of underwater loans with LTVs of 105% to 125% totaled 3,560 in the third quarter, up 87% from the second quarter. Since the inception of HARP program in April 2009, the GSEs have refinanced 19,859 underwater borrowers.
The HARP program allows borrowers to refinance without mortgage insurance policies. (Existing MI policies are transferred to the new loan.)
Since April 2009, the HARP program has refinanced nearly 480,000 high LTV loans that the GSEs own or guarantee. Treasury officials designed it to help borrowers take advantage of historically low mortgage rates.
