Experts Urge Expansion of Fed Refinancing Program

Washington, DC, Sept. 15, 2011 -- Some housing experts are urging the Obama administration to expand the Home Affordable Refinance Program, whose goal is to refinance mortgages to lower interest rates.

The program is aimed at homeowners who have no equity in their homes, as long as their mortgage is backed by Fannie Mae and Freddie Mac, the government-controlled housing firms.

The experts told the Senate Banking Committee that the Federal Housing Finance Agency could limit or eliminate fees assessed on banks that Fannie and Freddie charge on HARP refinancings and could expand the program to include homeowners in more dire circumstances.

Now, the HARP program allows borrowers to refinance only if they are not more than 25% underwater.