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Working Paper

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.

Suggested Citation

Gerardi, Kristopher, Lara Loewenstein, and Paul S. 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