The Federal Housing Finance Agency (FHFA) Monday morning unveiled long awaited changes to a White House refinancing program, waiving the LTV cap and certain origination fees on underwater Fannie Mae and Freddie Mac loans.
In total, the changes could eventually lead to up to $1 trillion of new refinancings, according to estimates made by different housing analysts.
FHFA also is waiving what it calls “certain” representations and warranties on these 'HARP' refis, which means lenders will not be held liable for buybacks.
New appraisals will be waived on these refis as well, according to a FHFA term sheet.
At press time the agency was briefing reporters on the plan.