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WASHINGTON-Fannie Mae and Freddie Mac have received the green light from their regulator to refinance underwater homeowners with loan-to value ratios as high as 125%.
The special refinancing plan that Obama administration officials unveiled in February limited the refinancing option to loans with LTV ratios of 80% to 105%.
But the 105% LTV limit did not offer relief for borrowers who have seen the value of their homes erode by 15% to 30%.
"The higher LTV...
