After a week of relative quietude via limited data and events that had many participants on vacation for the holiday-shortened week, headlines quickly heated back up to roil the mortgage market.

In a testimony on Tuesday from U.S. Department of Housing and Urban Development Secretary Shaun Donovan before the Senate Banking Committee, he noted the Federal Housing Administration (FHA) would be making changes to its streamline refinancing program to encourage more widespread use and that "in addition to taking steps to make these refinance loans more widely available, FHA is working on adjusting the premium structure for all streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, to further incentivize refinance activity. These changes will ensure that borrowers benefit from a net reduction in their overall mortgage payment while still ensuring FHA has the resources to pay any necessary claims."

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