Fannie, Freddie special refinance program extended

NEW YORK, March 1 (Reuters) - An Obama administration program to encourage refinancing of loans on U.S. homes that have fallen in value will be extended by a year, a key housing regulator said on Monday.

The Home Affordable Refinance Program, or HARP, a sister program to Obama's loan modification effort, will stay in effect through June 30, 2011, the Federal Housing Finance Agency said in a statement.

The program is administered by Fannie Mae FNM.N FNM.P and Freddie Mac FRE.N FRE.P, the two largest providers of U.S. home loan funding.

(Reporting by Al Yoon)