Florida has joined the chorus of states opening the door to the use of mortgage revenue bonds for subprime/ARM refinances, as permitted by federal housing legislation enacted into law this summer.[Public Law 110-289, Section 3021(b)].
The Preliminary Offering statement for the Florida Housing Finance Corp. Series 4 , non AMT bonds that I have posted HERE provides the details:
"Florida Housing may elect to use a portion of the proceeds of the 2008 Series 4 Bonds to refinance loans in accordance with the 2008 Housing Act. Although Florida Housing has not finalized the terms with respect to loans for refinancing, it expects that such loans would have terms (interest rates, upfront points, etc.) similar to loans made to first-time homebuyers under the Program. Florida Housing also expects that these loans for refinancing would be underwritten in accordance with the FHA Secure or FHA Hope for Homeowners programs and pooled into GNMA Securities."
As I have posted previously, the Ohio HFA expects to move forward with a similar subprime/ARM refinancing program, and the Tennessee HFA subprime/ARM refinancing program is already up and operating.
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