A recent executive action by President Barack Obama will modify the Home Affordable Refinance Program, which could help homeowners refinance their mortgages if they have loans that have elevated interest rates.
The changes will be significant, as many people have been unable to secure any type of refinancing under the old structure. Now, those consumers who owe more than 125 percent of the total market value of their home, will receive an opportunity to refinance.
"Today's announcement by the FHFA of enhancements to the HARP is a welcome development," Michael Williams, president and chief executive officer of Fannie Mae, said regarding enhancements to the HARP in a statement. "By removing some of the impediments to refinance, lenders can more easily participate in the program allowing more eligible homeowners to take advantage of the low interest rates."
In addition, fees to take part in the refinancing process will either be cut or drastically reduced. This may help even more take part in the process, as they may not have been able to under the old rules.
This information, coupled with continued low interest rates, may help the market rebound, with many consumers, as well as lenders possibly able to benefit.