HARP Volume Surpasses FHFA Expectations in 2012

Refinance volume under the Home Affordable Refinance Program (HARP) pulled back slightly in Q4 2012, but data from the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA) indicates interest in the program remains high.

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FHFA's ""December 2012 Refinance Report"":http://www.fhfa.gov/webfiles/25033/Dec12RefiReport.pdf shows HARP volume was 76,461 in the year's final month. For the quarter, HARP volume was 297,461, representing 22 percent of total refinance volume reported by Fannie Mae and Freddie Mac.

According to FHFA, nearly 1.1 million HARP refinances were completed in 2012, bringing total volume to 2.2 million since the program's implementation in April 2009.

The top five states for HARP refinances (since 2009) are California (which has reported 301,327 refinances under the program), Florida (175,686), Illinois (147,252), Michigan (144,709), and Arizona (106,387).

In terms of HARP share, Nevada takes the No. 1 spot, with 46 percent of refinances since April 2009 falling under the program (compared to the national average of 15 percent). In December alone, HARP refinances represented 68 percent of total refinances in the state, triple the national average of 21 percent.

FHFA also reported most HARP refinances since the program's inception have been on primary residences (1,895,827 loans). Second homes comprised 69,522 HARP refinances, and 199,672 were for investment properties.

In December, 18 percent of HARP refinances for underwater borrowers were for 15- and 20-year mortgages, which build equity faster than the traditional 30-year mortgage. The findings fit with Freddie Mac's ""refinance data"":https://themreport.com/articles/freddie-mac-27-of-q4-refinancers-shortened-loan-terms-2013-02-12, which showed that 27 percent of borrowers who refinanced in Q4 opted for a shorter loan term.