Government-supported refinance production nearly doubled on a monthly basis and now accounts for up to a third of all conventional refinance transactions. The states with the highest utilization rates for the federal refinance program are also the states with the highest share of negative-equity properties.
During June, 382,539 conventional agency refinances were completed, more than the 341,209 refinances closed in May. Fannie Mae was responsible for 234,337 of June’s refinances, while Freddie Mac refinances totaled 148,202 during the month.
Refinances closed through the Home Affordable Refinance Program accounted for 125,866 of June’s refinances, surging from the 67,456 HARP refinances closed in May. The one-third HARP share in June was greater than the less than one-quarter share the prior month and the highest share ever.
The findings were outlined in the Refinance Report June 2012 from the Federal Housing Finance Agency.
Mortgages with loan-to-value ratios between 80 percent and 105 percent accounted for 47,750 HARP refinances in June, while another 24,358 had LTVs higher than 105 percent and up to 125 percent, and 53,758 had LTVs in excess of 125 percent.
HARP transactions with LTV ratios higher than 105 percent accounted for 62 percent of June business, nearly doubling the 32 percent share a month earlier.
In Nevada, 78 percent of total refinances were closed through HARP in June — the biggest share of any state. Arizona followed with a 70 percent HARP share, then 68 percent in Florida and Michigan’s 56 percent. Georgia’s 55 percent was the fifth-biggest share in the country.
In CoreLogic’s negative-equity report released last month, those same states — Arizona, Florida, Georgia, Michigan and Nevada — were the five states with the highest share of negative equity properties.
Out of the 2,169,762 Fannie and Freddie refinances completed during the first half of this year, 422,969 were HARP transactions.
The latest activity brought HARP production since the inception of the program in April 2009 to 1,444,820 transactions. During that same period, a total of 12,209,572 refinances were completed through the two secondary lenders.
California accounts for more HARP refinances than any other state, with 189,446 transactions during the life of the program.
