Evaluating the Benefits of a Streamlined Refinance Program
24 Pages Posted: 31 Dec 2020
Date Written: December, 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: refinancing, mortgage markets, GSEs
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