The latest monthly production of government-supported refinances increased 36 percent from the previous month and was up 165 percent from a year earlier.
Since the inception of the Home Affordable Refinance Program in April 2009, refinances completed through the program totaled 1,318,954. Fannie Mae’s share of the total was 703,235 transactions, while Freddie Mac’s program-to-date HARP volume was 615,719.
During that same period, total refinances at the two secondary lenders — including HARP and non-HARP transactions — were 11,827,033.
The findings were spelled on in the Federal Housing Finance Agency’s Refinance Report for May.
HARP, which was established in April 2009 and expanded in the fall of last year, is available only for loans owned or guaranteed by Fannie or Freddie.
Mortgages with loan-to-value ratios between 80 percent and 105 percent accounted for 1,150,065 of lifetime volume, while another 157,771 had LTVs between 105 percent and 125 percent and 11,118 had LTVs in excess of 125 percent.
In the first five months of this year, HARP volume totaled 297,103 transactions versus 400,024 processed during all of 2011.
This year’s total HARP activity included 78,273 transactions for borrowers with LTVs higher than 105 percent — more than the 59,991 in this category for all of last year.
Out of the 341,209 Fannie and Freddie total refinances during just May, 67,456 were closed through HARP.
In April, 49,453 of the total 267,610 in Fannie and Freddie refinances were processed through HARP.
Just 25,475 of the 168,442 total refinances closed in May 2011 were HARP transactions.
“The removal of the 125 percent LTV cap and certain risk-based fees for refinancing enabled more underwater borrowers to access refinancing through HARP,” the report said. “In May, borrowers with LTV greater than 105 percent accounted for 32 percent — or almost one third — of HARP volume, up from 15 percent in 2011.”
The share of May’s total refinances that were HARP was 48 percent in Nevada, while the proportion was 44 percent in Michigan and 42 percent in Arizona.
California accounted for more HARP transactions since the program’s inception than any other state: 165,894. After that was 98,019 in Illinois, 87,342 in Michigan and 74,498 in Florida. Washington was No. 5 with 62,445.