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Banks Launch Mortgage Refinancing Program

By Kevin Spak, Newser Staff

Posted Apr 10, 2009 8:26 AM CDT

(Newser) – The country’s top lenders are slowly implementing the Obama administration’s plan to help otherwise ineligible borrowers to refinance their mortgages at the current bargain-basement rates, the Wall Street Journal reports. The program is open to those with mortgages owned by Freddie Mac or Fannie Mae who are current on their payments, but who owe 80-105% of their home’s value.

The program is a central part of the administration’s $275 billion plan to stabilize the housing market. Though the average 30-year fixed-rate mortgage rate rose this week, it’s still below 5%. Bank of America says it’s already received nearly 200,000 inquiries about the program from homeowners who’d like to take advantage of those rates, but wouldn’t otherwise have the equity.

In this 2007 file photo, the Fannie Mae building in Washington is seen. (AP Photo/Manuel Balce Ceneta, File)

In this July 13, 2008. file photo, the Freddie Mac's corporate offices are seen in McLean, Va. (AP Photo/Pablo Martinez Monsivais, File)

A branch of Wells Fargo bank is shown in San Francisco, Thursday, April 9, 2009. (AP Photo/Eric Risberg)

A customer leaves a Bank of America office Friday, Feb. 27, 2009, in the Brooklyn borough of New York. (AP Photo/Mark Lennihan)

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$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

SEC Sues Ex- Fannie, Freddie CEOs

Firms wildly misrepresented exposure to subprime loans: feds

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

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Banks Launch Mortgage Refinancing Program

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OTHER STORIES ON OUR RADAR

housing market • mortgage • Freddie Mac • Fannie Mae • mortgage rates • refinanced mortgages • Obama administration

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

SEC Sues Ex- Fannie, Freddie CEOs

Firms wildly misrepresented exposure to subprime loans: feds

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?