Evaluating the Benefits of a Streamlined Refinance Program
24 Pages Posted: 8 Jul 2020
Date Written: July 8, 2020
Mortgage borrowers who have experienced employment disruptions as a result of the COVID-19 pandemic are unable to reﬁnance their loans to take advantage of historically low market rates. In this article, we analyze the eﬀects of a streamlined reﬁnance (“reﬁ”) program for government-insured loans that would allow borrowers to reﬁnance without needing to document employment or income. In addition, we consider a cash-out component that would allow borrowers to extract some of the substantial housing equity that many have accumulated in recent years.
Keywords: government-sponsored enterprises, refinancing, business cycles
JEL Classification: R30, R38
Suggested Citation: Suggested Citation