The Obama administration’s landmark refinance plan for severely underwater homeowners became fully operational Monday after automated federal loan processing systems were updated during the weekend.
But nearly five months after the program’s debut, and following what many hoped was the last hurdle to a wholesale start, mortgage brokers said wary lenders are still hesitant to refinance loans other than their own. The new Home Affordable Refinance Program is for homeowners current on their mortgage payments and regardless of how much more they owe on their loan than their home’s value, or being “underwater.”

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