WASHINGTON—The Federal Housing Finance Agency (FHFA) released its December 2012 Refinance Report, which showed that the Home Affordable Refinance Program (HARP) surpassed previous estimates for the program. Nearly 1.1 million HARP refinances were completed in 2012, making nearly 2.2 million completed since the program was implemented in April 2009. The report listed the top five states for HARP refinances since 2009: California (301,327), Florida (175,686), Illinois (147,252), Michigan (144,709) and Arizona (106,387).
Also included in the report:
- Most HARP refinances were on primary residences at 1,895,827 loans while second homes comprised 69,522 HARP refinances and 199,672 HARP refinances were for investment properties.
- HARP volume reached 297,461 refinances in the fourth quarter of 2012 representing 22 percent of total refinance volume.
- In December, 25 percent of loans refinanced through HARP had loan-to-value ratios greater than 125 percent.
- In December, HARP refinances represented 68 percent of total refinances in Nevada, triple the 21 percent of total refinances nationwide. In Florida, HARP refinances represented 58 percent of total refinances, more than double the HARP percentage nationwide.
- In December, 18 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
The Refinance Report in full can be found here.