Federal Housing Finance Agency Director James Lockhart was quoted saying that the GSEs are studying plans to raise the LTV ceiling under the Obama refinance plan to 125% from 105%. However, JPMorgan Securities analysts said that raising the LTV will only marginally affect the number of people opting to refinance.

Increased LTV could, in theory, help an estimated 9% of the borrowers who took out agency mortgages between 2006 and 2008, analysts said. At 125% LTV, only a small minority of the agency populations (3%) could still be left out of the refinance window.

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