The Home Affordable Refinance Program was set to expire in June, but the Obama administration announced Monday that borrowers with little or no equity in their homes will have another year to take advantage of the refinancing program.
So far it has reached fewer than 200,000 of the up to 5 million borrowers federal regulators hoped it would help. However, market conditions have not changed significantly since the program was launched last year. So to give lenders more time to implement the plan and to support market stability, the initiative will be extended to June 2011.
The program is aimed at the millions of borrowers whose home values have been diminished by a weak housing market. It also meant for people who owe more than their houses are worth, making it impossible for them to take advantage of historically low mortgage rates.