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41 » VISIT US ONLINE @ DSNEWS.COM REFINANCE VOLUME DOWN AS RATES INCREASE Approximately 750,000 borrowers chose to refinance their home loans through Fannie Mae and Freddie Mac during Q 4 of last year, according to the Federal Housing Finance Agency (FHFA). In the FHFA Refinance Report for Q 4 2016 released mid-February, the agency also found that 13,220 refinances were run through the Home Affordable Refinance Program (HARP). Over that period, underwater borrowers with 15- and 20-year mortgages accounted for more than a quarter of refinances. e report also stated that 27 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30- year mortgages. Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program. e latest data shows that 10 states accounted for more than 60 percent of the nation's HARP- eligible loans with a refinance incentive, including California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Ohio, and Pennsylvania. Although not a state, Puerto Rico was also included in this listing. HARP refinancing volume declined just a little between the third and fourth quarters as mortgage interest rates continue to climb. Still, that brings the total number of refinances through HARP to roughly 3.4 million since the program was first established under the Obama administration in 2009, according to the report. FHFA reported that close to 200,000 borrowers could still refinance their loans through HARP as of the third quarter and save $2,400 per year on average as a result. "e program is designed to provide these borrowers with an opportunity to refinance by permitting the transfer of existing mortgage insurance to their newly refinanced loans, or by allowing those without mortgage insurance on their previous loans to refinance without obtaining new coverage," FHFA said in its report. FORECLOSURE RATE DECLINES, ECONOMIC ACTIVITY RISES e foreclosure inventory was down 1.9 percent in December 2016, representing 62 months of consecutive declines, according to the National Foreclosure Report released by CoreLogic in mid-February. e report stated that while a decline in delinquencies had been realized for most of the country, there were a few states that continued to experience a high rate of foreclosures. "Serious delinquency rates rose in Louisiana, Wyoming, and North Dakota, reflecting the weakness in oil production," said Frank Nothaft, Chief Economist for CoreLogic. e report continued by stating there were only 21,000 completed foreclosures nationally in December 2016 compared to 36,000 in December 2015. Approximately 329,000 homes in the United States were in some stage of foreclosure compared to 467,000 in December 2015. e seriously delinquent rate is at 2.6 percent, which is the lowest level since June 2007. As of December 2016, the foreclosure inventory represented .08 percent of all homes with a mortgage, compared to 1.2 percent in December 2015. Anand Nallathambi, past President and CEO of CoreLogic, cited that foreclosure decline is attributed to several economic factors. "e decrease in foreclosures is powered principally by increasing employment levels, stringent underwriting standards, and higher home prices over the past few years," he said. "We expect to see further declines in delinquency and foreclosure rates in 2017." Approximately 29 states have an inventory of foreclosed homes lower than the national rate, with 16 states showing declines of more than 30 percent in year-over-year foreclosures inventory. Washington (-42.1 percent) and Florida (-41.1 percent) showed the greatest year-over-year declines. States with the highest foreclosure inventory as a percentage of mortgaged homes include New Jersey (2.8 percent), New York (2.7 percent), Maine (1.8 percent), Hawaii (1.7 percent), and Washington, D.C. (1.6 percent). ose states with the lowest foreclosure inventory as a percentage of mortgaged homes include Colorado (0.2 percent) as well as Arizona, California, Minnesota, and Utah, all with a percentage of 0.3 percent. Among major metropolitan areas, the foreclosure rate in New York City decreased by 27.5 percent, while the Chicago area experienced a 29.1 percent decrease. Twenty-eight nonjudicial states, 22 judicial states, plus Washington, D.C. (nonjudicial) posted a year-over-year double-digit decline in foreclosures.

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