Streamline refinancing applications have more than doubled since the Federal Housing Administration (FHA) opened a special program on June 11 for existing FHA borrowers who had not refinanced since May 2009.
“We saw more than 80,000 applications in just the first month,” Housing and Urban Development (HUD) secretary Shaun Donovan said during a visit to Ohio this week.
HUD previously reported that FHA received 51,000 streamline applications during the first 10 days of the new program.
In the months preceding the launch of the special streamline program, FHA was receiving 33,000 to 47,000 applications. In May, streamline refinance applications fell to 17,000 in anticipation of the June 11 launch date.
Announced by President Obama in early February, the special program is designed to give existing FHA borrowers who are still current (on loans originated at least three years ago) a chance to refinance at today’s historically low interest rates.
FHA is only charging an upfront fee of 1 basis point and a 50 bp annual premium under the special refi program. The standard FHA rate is 175 bps for the upfront fee and 125 bps for the annual premium.