Mortgage News

Fannie Mae and Freddie Mac have received the green light from their regulator to refinance underwater homeowners with loan-to-value ratios as high as 125%. The special refinancing plan that Obama administration officials unveiled in February limited the refinancing option to loans with LTV ratios of 80% to 105%. The 105% LTV limit did not offer any relief for borrowers who have seen the values of their home erode by 15% to 30%.

"The higher LTV refinancings will allow more homeowners to strengthen their finances by taking advantage of lower mortgage rates," Federal Housing Finance Agency Director James Lockhart said. Fannie Mae said it would accept delivery of the higher LTV loans starting Sept. 1. The financing program is only available to borrowers with loans that are owned or guaranteed by Fannie and Freddie and are current on their mortgage payments. Your loan officer can let you know if your loan is owned or guaranteed by these agencies....q Sources National Mortgage News