New Updates to GSE Refinance Programs to be Released November 15th.

The Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac have announced enhancements to the Home Affordable Refinance Program (HARP) that are intended to make it easier for lenders to refinance the mortgages of eligible borrowers. Guidelines for Fannie Mae including implementation dates and details, will be available on November 15, 2011. This is great news for those who have tried to refinance and have not been able to due to low appraisals and other issues. This could be an important step in keeping homeowners who are underwater in their homes by making payments more affordable and sustainable. In addition, to quote FHFA, the regulator for Fannie and Freddie, "An important element of these changes is the encouragement, through elimination of certain risk-based fees, for borrowers to utilize HARP to refinance into shorter-term mortgages. Borrowers who owe more on their house than the house is worth will be able to reduce the balance owed much faster if they take advantage of today’s low interest rates by shortening the term of their mortgage." Stay tuned as rates of implementation of this program will vary from lender to lender. Here is the link to the FHFA release.