The Federal Housing Finance Agency said it will extend for another year the Home Affordable Refinancing Program, which allows refinancing of underwater loans through Fannie Mae and Freddie Mac.

The program is now set to expire on June 30, 2012.

Fannie and Freddie also are making adjustments to their programs, the FHFA said Friday.

Freddie will exempt Harp loans from new price adjustments announced in November. Fannie will limit Harp eligibility to loans originated before May 2009, the same as Freddie. The government-sponsored enterprises' cumulative Harp refinancings rose 30% in the fourth quarter to just over 621,800 loans.

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