Discussion Paper
Evaluating the Benefits of a Streamlined Refinance Program
Abstract: Mortgage borrowers who have experienced employment disruptions as a result of theCOVID-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 amount of housing equity that many have accumulated in recent years.
Keywords: mortgage; refinance; cash-out; COVID-19;
JEL Classification: G28; G51; R38;
https://doi.org/10.29338/ph2020-08
Access Documents
File(s): File format is application/pdf https://www.frbatlanta.org/-/media/documents/research/publications/policy-hub/2020/06/25/evaluating-the-benefits-of-a-streamline-refinance-program.pdf
Bibliographic Information
Provider: Federal Reserve Bank of Atlanta
Part of Series: Policy Hub*
Publication Date: 2020-06-25
Number: 2020-8