FNMA 125% Refinance Program

This week, Obama and his adminstration announced they will allow Fannie Mae and Freddie Mac to refinance homeowners with Loan to Value's up to 125%. As with most programs your potential approval lies in the details. Most lenders have still been retooling for the 105% LTV program and only around 20,000 of these Refinance Plus loans/mortgages have been funded. Not nearly as many as was hoped for. Clearly this plan will have more impact with the loosening of the guidelines. But is that what we need? In any event, programs that help keep families in homes are key to the rebound of the overall economy.