The Federal Housing Finance Agency (FHFA) announced today that it will extend Home Affordable Refinance Program (HARP) by two years to Dec. 31, 2015. The program was set to expire Dec. 31, 2013. 

"More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk," said FHFA Acting Director Edward J. DeMarco in a statement. "We are extending the program so more underwater borrowers can benefit from lower interest rates."

HARP’s ability to allow underwater homeowners to refinance makes it worth extending, the agency said. "Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers," according to a statement by the FHFA.

The agency also said it plans to launch a nationwide campaign to promote HARP to homeowners.

Fannie Mae and Freddie Mac have refinanced approximately 2.2 million loans through the program since it was introduced by FHFA and the U.S. Department of the Treasury in April 2009.