Saying that it hopes to help several million more families savemoney while helping the economy, the Obama administration on Mondayunveiled a multifaceted plan to encourage refinancing ofmortgages.

The modifications to the Home Affordable Refinance Program include: Removing the current125% loan-to-value ceiling for fixed-rate mortgages backed byFannie Mae and Freddie Mac; waiving certain representations andwarranties that lenders commit to in making loans owned orguaranteed by Fannie and Freddie; eliminating the need for newproperty appraisals in some refinancing transactions; and extendingthe end-date for the program from June 2012 to Dec. 31, 2013.

“This will provide a substantial benefit to the broader economyand to the housing market,'' Secretary of Housing and UrbanDevelopment Secretary Shaun Donovan said in a conference call withreporters.

He said that regulatory changes are among the steps that theObama administration can take without getting congressionalapproval. However, he urged lawmakers to pass the administration'sjob creation measures as a means to help the economy and housingmarket even more.

Under the new rules, which are issued by the Federal Housing Finance Agency, these kinds of mortgages areeligible to be refinanced: It must be owned or guaranteed by Fannieor Freddie and been sold to one of them before May 31, 2009; itcan't have been refinanced under HARP except for Fannie loans under HARP from March-May, 2009; the current loan-to-value-ratio must be greater than 80%; and he borrower must be current onthe mortgage at the time of the refinance, with no late payments inthe past six months and no more than one late payment in the past12 months.