Fannie and Freddie May Refi Deeper-underwater Mortgages

June 19, 2009 -- Seattle Post-Intelligencer

The government may soon let mortgage giants Fannie Mae and Freddie Mac refinance mortgages whose balances are higher than 105 percent of a home's value, according to a Bloomberg report.

"We're actively considering how to structure a program that makes sense over 105 percent," Federal Housing Finance Agency Director James Lockhart said, according to Bloomberg. The story quoted him saying a limit of 125 percent was under consideration, but "not necessarily the number we're going to end up with."

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