US may expand mortgage refinance programme: WSJ

(REUTERS) - The US government is considering expanding its mortgage refinancing programme to include borrowers whose mortgages are not backed by Fannie Mae and Freddie Mac, the Wall Street Journal reported, citing people familiar with the discussions.

The refinancing programme now being considered also seeks to include "underwater" borrowers who owe more than their homes are worth, the Journal said.

The proposal would also transfer potentially riskier loans held by private investors to the government-sponsored mortgage entities Fannie Mae and Freddie Mac, the paper said.

Such a move would require congressional authorisation to temporarily change the charters of Fannie Mae and Freddie Mac, according to the Journal.