The whisper is a refinance similar to FHA's "Streamline Refinance" program. With an FHA loan as long as you've been making your payment, the loan is refinanced without concern to the appraised value. This is how things should have been done from the get go, but of course I wasn't consulted early on...
What's unknown is any mandatory re-subordination clauses for second loans - a must, or if there is a "benefit to borrower" requirement. BtoB is when you refinance from 5.0% to 4.0%. If you refinance from 4.50 to 4.375%, there isn't a benefit great enough to pass most lenders requirements. A .125% reduction in rate is "churning" a loan AKA serial refinancing. A final issue is if it is a "one and done" program. The Home Affordable Refinance Program (HARP) allowed borrowers to refinance up to 105% to 125% loan to value. The problem is that if you refinanced from 5.75% to 4.875%, you cannot use the HARP program again to refinance from 4.875% to 4.375% - current market.
What about $729,750 FNMA / FHLMC loans? Also "who knows?!?". It's hard to say if the Congress has the walnuts to reauthorize the temporary limits in a downward trending asset market. As well, most of the $729,750 borrowers got relatively good rates from the start. The benefit to borrower seems to fall mainly in the lap of "the rich" and since "the rich" are a currently favored punching bag, it's highly doubtful that the temporary limits would be included.
It's unclear if only current servicers will perform these refinances, or if it will be a free for all. It would be better if the servicers took care of their own portfolio in terms of efficiencies, but some servicers do not wish to or simply don't have the boots on the ground to refinance all of their loans. Those servicers who refused to participate in the HARP program should be compelled to. Stranding borrowers just because you've got their loan and won't release it isn't fair play.
The worse case scenario? The Gubmit tries to establish a national refinance center, staffed by the unemployed, to centralize and control the process while also creating jobs. Imagine getting your mortgage from the D.M.V. which is how this might turn out.
Everything out there, including this post, is mere speculation. Any new refinance programs will likely be announced when the Teleprompter in Chief makes his speech on jobs come early September, available perhaps by November once the details get vetted by the Bonobo's running Congress.
My .02c
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