THE BIG FINISH
WRAP YOUR HEAD AROUND THE MARKET'S LEADING INDICATORS
96
MEASURING THE INCENTIVES OF REFINANCING
In January, the Federal Housing Finance Agency (FHFA)
released a report on refinance volumes for November 2017.
More than 2,000 refinances were completed through FHFA's
Home Affordable Refinance Program (HARP) in November,
bringing total refinances through HARP since its inception
in 2009 to more than 3 million, the report indicated. The
loans refinanced in November represented 1 percent of total
refinance volume during the month.
The report indicated that more than 2 million loans were
refinanced through HARP for primary residences from the
start of the program to November 2017. Additionally, 110,498
were for second homes and 461,945 were for investment
properties.
The latest FHFA data also took a look at the areas where it
offers a refinance incentive for HARP. Nine states and one U.S.
territory accounted for more than 60 percent of HARP eligible
loans with a refinance incentive—with the total number of
loans eligible being 118,705 as of June 30, 2017.
According to the FHFA, the report utilizes the following criteria
to identify HARP-eligible loans with a refinance incentive:
Conventional loans originated before June 1, 2009, an unpaid
principal balance greater than 80 percent of current property
value, and meeting the payment history requirement of
no delinquencies in the prior six months and at most one
delinquency in the prior 12 months.
ILLINOIS
12,035
MICHIGAN
9,114
OHIO
9,091
PENNSYLVANIA
6,840
NEW JERSEY
8,423
GEORGIA
6,378
ALABAMA
4,571
PUERTO RICO
12,035
FLORIDA
10,293
