Evaluating the Benefits of a Streamlined Refinance Program

24 Pages Posted: 31 Dec 2020

See all articles by Kristopher Gerardi

Kristopher Gerardi

Federal Reserve Bank of Atlanta

Lara Loewenstein

Federal Reserve Bank of Cleveland

Paul Willen

Federal Reserve Bank of Boston - Research Department; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: December, 2020

Abstract

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: refinancing, mortgage market, GSEs

Suggested Citation

Gerardi, Kristopher S. and Loewenstein, Lara and Willen, Paul S., Evaluating the Benefits of a Streamlined Refinance Program (December, 2020). Federal Reserve Bank of Boston Research Paper Series Current Policy Perspectives Paper No. 89267, Available at SSRN: https://ssrn.com/abstract=3757521

Kristopher S. Gerardi (Contact Author)

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8561 (Phone)

HOME PAGE: http://sites.google.com/site/kristophergerardishomepage/

Lara Loewenstein

Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

Paul S. Willen

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
10
Abstract Views
126
PlumX Metrics