Fannie mae to offer program to refinance underwater borrowers

With the recent explosion of purchase and refinance business going back to FHA loans since the demise of sub prime lending and the mortgage market meltdown. Fannie Mae is introducing a program for borrowers who have found that their equity from 2005-2006 has gone south.

Fannie Mae has been designing program initiatives that will assist in stabilizing the explosive foreclosure market of the past 18-24 months and sustain those borrowers who may fall behind without assistance.
The new loans will allow borrowers who have negative equity (the value of the home is worth less than the amount of the mortgage note) to refinance up to 120% of the current properties value. Borrowers must be current on their mortgage to qualify. For more info visit http://www.fanniemae.com