High LTV borrowers accounted for a large portion of refinancing activity in March.
Figures released today by the Federal Housing Finance Agency (FHFA) show that refinancing volumes have remained high despite rising mortgage rates. Nearly 462,000 refinances took place in March, with 100,000 of those complete through the government's Home Affordable Refinance Program (HARP).
Of refinances through the HARP program, highly geared borrowers represented a significant proportion. Borrowers with LTV ratios of 105 percent accounted for 45% of the volume of HARP loans through the first quarter.
Housing markets in areas hard hit by the collapse saw an especially high proportion of HARP borrowers. According to the FHFA, HARP refinances represented 63 percent of total refinances in Nevada, and 53 percent in Florida. Sixty-four percent of HARP volume in Nevada, Arizona and Florida came from underwater borrowers.