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Evaluating the Benefits of a Streamlined Refinance Program


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 markets; GSEs;

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File(s): File format is application/pdf https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2020/cpp20201228.pdf
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Provider: Federal Reserve Bank of Boston

Part of Series: Current Policy Perspectives

Publication Date: 2020-12-28