For the second time, the end date for the government’s refinance program has been extended. In addition, a marketing campaign is being launched to reach more prospective program participants.
When the Home Affordable Refinance Program was introduced in 2009 as part of the Obama administration’s Making Home Affordable initiative, the program was scheduled to end in June 2010.
Enhancements to the program in October 2011 dubbed “HARP 2.0” included an extension of the sunset date until Dec. 31, 2013.
But on Thursday, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac have been directed to extend HARP until Dec. 31, 2015.
FHFA Acting Director Edward J. DeMarco said that the extension is intended to increase the number of participating borrowers, which so far are nearly 2.2 million.
The regulator said a nationwide campaign will soon be launched to inform and educate borrowers about the program.
Eligible HARP mortgages must have been sold to Fannie or Freddie before May 31, 2009, and have a loan-to-value ratio in excess of 80 percent. No late payments are allowed within the past six months.
