Industry NewsMortgage

BofA launches ‘Home Affordable’ refis

Wells Fargo loan apps up 64%

Bank of America says it's begun refinancing mortgages under the Obama administration's "Making Home Affordable" initiative, which is designed to allow homeowners with loans owned by Fannie Mae or Freddie Mac to take advantage of lower rates.Homeowners who are current on their mortgages are eligible to refinance under the program even if their loan-to-value (LTV) ratio has ballooned to as much as 105 percent because of falling property values.There's no minimum credit score for "Home Affordable" refinancings, and private mortgage insurance (PMI) is not required to refinance loans if insurance was not required on the original loan (Fannie and Freddie generally require buyers putting down less than 20 percent to purchase PMI). Borrowers refinancing a loan with PMI will not be required to buy additional coverage, even if they now have a higher LTV (see story).Bank of America said it's been contacted by 200,000 homeowners since the Home Affordable program was announced. ...