Fannie Mae Refinancing Volume Jumps to $41 Billion in February

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(News Source : Fannie Mae)

(WASHINGTON, D.C.) -- Fannie Mae (NYSE/FNM) announced on Wednesday that the company's refinancing volume jumped to more than $41 billion in February, nearly three times the refinancing volume the company experienced during the month of January and the largest refinancing volume in nearly a year.

"Borrowers are increasingly taking advantage of the low mortgage rates available in the market today," said Tom Lund, Executive Vice President, Single-Family Mortgage Business. "We anticipate that volumes will increase even more as millions of additional homeowners become eligible to refinance under the President's Making Home Affordable plan. Providing broader access to affordable, sustainable mortgages through expanded refinancing opportunities is a critical part of preventing future foreclosures and hastening recovery."

The company also disclosed that more than 100,000 borrowers have accessed its online mailbox to inquire about their eligibility for refinancing under the Obama Administration's refinancing plan, and about 50,000 callers have contacted Fannie Mae's national hotline since the plan was announced. In addition, today the company launched a new online look-up tool on the company's Web site (www.fanniemae.com) that will allow borrowers to quickly determine if they have a Fannie Mae-held mortgage -- a determining factor in whether a borrower is eligible for the program.

Home Affordable Refinance

Fannie Mae launched its Home Affordable Refinance initiative earlier this month as part of the President's Making Home Affordable plan. Key features include:

• Additional Flexibilities: Most borrowers refinancing an existing Fannie Mae loan will not be required to buy new or additional mortgage insurance if the loan at the time of the refinance is more than 80 percent of the home's value. Existing mortgage insurance must be carried forward to the new loan. In addition, Fannie Mae can refinance loans up to 105 percent of a home's value with this new flexibility, so even borrowers who are "underwater" -- who owe more than their home is worth -- may be able to refinance. This will expand the number of borrowers able to take advantage of lower interest rates that reduce monthly payments, or refinance into a more sustainable mortgage.

• Streamlined Processing: Beginning April 4, all 1,600 lenders and 29,000 mortgage brokers using Fannie Mae's Desktop Underwriter® platform will be able to process an application to refinance any existing Fannie Mae loan, allowing for greater lender origination capacity, more consumer choice and easier refinancing for borrowers.

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