Until we see the critical details on the HARP redo – mostly omitted in this morning’s FHFA announcement – a complete assessment of the program’s potential awaits.  But, we conclude one important, forward-looking point from what we know so far:  FHFA is trying to use the HARP less to refi troubled borrowers than to shrink Fannie and Freddie.

The full report is available to subscription clients.  To find out how you can sign up for the service, click here.

.