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.
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Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers
Publication Date: 2020-07-08