The Federal Housing Finance Agency said Friday more than 519,000mortgage loans have been refinanced through Fannie Mae and FreddieMac under the Home Affordable Refinance Program since the beginning of thisyear.

The continued high volume of HARP loans is attributed torecord-low mortgage rates and program enhancements announced lastyear, including removal of the loan-to-value ceiling for borrowerswho refinance into fixed-rate loans, and the elimination orlowering of fees for certain borrowers, FHFA said.

The information was included in the release of FHFA's JulyRefinance Report.

“When we announced additional program changes to HARP last fall,we were cautiously optimistic that the changes would double or morethe number of HARP refinances,” said Acting Director Edward J.DeMarco. “With more than half-a-million homeowners taking advantageof the program in the first seven months of this year Fannie Maeand Freddie Mac are on track to meet or surpass our originalestimates.”

The number of loans refinanced through HARP during the firstseven months of 2012 eclipses the total number of HARP refinanceslast year, which was 400,024, the agency said.

Borrowers in June and July 2012 with LTV ratios greater than105% accounted for more than half the volume of HARP loans. Lendersbegan to sell Fannie Mae and Freddie Mac securities containingthese loans with LTV ratios greater than 125% as of June 1.

During the month of July, HARP refinances represented nearly 60%or more of total refinances in Nevada, Arizona and Florida, compared with 27% of total refinancesnationwide. Underwater borrowers in the three states with LTVratios greater than 105% represented more than 70% of HARP volumein July.