Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that the total number of loans refinanced through the Home Affordable Refinance Program (HARP) in the third quarter declined compared to HARP refinances in the prior quarter.  FHFA's third quarter Refinance Report indicates that 25,824 HARP refinances were completed between July and September, down from the 31,561 HARP refinances completed from April through June.

More than 3.3 million borrowers have refinanced their homes through HARP since the program began in 2009, and FHFA estimates that, as of June, more than 429,000 borrowers nationwide still have a financial incentive to refinance through the program.  The top five states with the highest numbers of "in-the-money" borrowers that remain eligible for a HARP refinance are Florida, Ohio, Illinois, Michigan and Georgia.

Borrowers are considered "in-the-money" if they meet the basic HARP eligibility requirements, have a remaining mortgage balance of $50,000 or more, have a remaining term of greater than 10 years, and an interest rate at least 1.5 percent higher than current market rates.  Nationwide, these borrowers could save, on average, as much as $200 per month on their mortgage payments, or $2,400 per year.  See the U.S. map showing the number of HARP-eligible borrowers by Metropolitan Statistical Area, county and zip code.

FHFA is continuing its efforts to reach HARP-eligible borrowers and has held town-hall style events with local community leaders in Chicago, Atlanta, Detroit, Miami, Newark and Phoenix to get the word out about HARP.  Earlier this month FHFA partnered with the Ohio Housing Finance Agency to host a webinar designed to raise awareness about HARP among community leaders in that state.  HARP will sunset on December 31, 2016. 

Also in the third quarter Refinance Report:

• Through September, 28 percent of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent) resulted in 15- and 20-year mortgages, which helps borrowers build equity faster than traditional 30-year mortgages.
• Through September, HARP refinances represented 12 or more percent of total refinances in Florida and Georgia, more than double the 5 percent of total refinances nationwide.
• The top five states with the highest number of total HARP refinances completed through September are Florida, California, Illinois, Michigan and Georgia.  See page 14 of the Report for a list of total HARP refinances by state.

Link to Refinance Report

Link to HARP.gov