Evaluating the Benefits of a Streamlined Refinance Program
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.
JEL codes: R30, R38.
Keywords: government-sponsored enterprises, refinancing, business cycles.
Suggested citation: Gerardi, Kristopher, Lara Loewenstein, and Paul Willen. 2020. ”Evaluating the Benefits of a Streamlined Refinance Program. ”Federal Reserve Bank of Cleveland, Working Paper No. 20-21. https://doi.org/10.26509/frbc-wp-202021.