On July 1st, The FHFA authorized 125% loan to value ratios on loans written by Fannie Mae and Freddie Mac, in an effort to expand the Home Affordable Refinance Propgram (HARP) to homeowners who are current on their mortgage payments from the present loan to value ration of 105 to 125%. These expanded refinance opportunities offer qualified borrowers whose mortgages are currently ownerd or guaranteed by Fannie Mae and Freddic Mac. People with qualifying loans will be allowed to refinance those loans according to the terms of the HARP established earlier this year.
This program is in part meant to encourage home owners to opt for mortgage terms amortized for less than 30 years to help them get back 'above water'.
