Saying that it hopes to help several million more families save money while helping the economy, the Obama administration on Oct. 24 unveiled a multifaceted plan to encourage the refinancing of mortgages.

The initiative, which will be implemented during the next few months, is aimed at helping consumers who owe more on their mortgages than their house is worth. The Obama administration has maintained that by providing these homeowners–whose mortgages are underwater–with additional relief, it will allow them to spend money elsewhere and help jump-start the economy.

The changes to the Home Affordable Refinance Program include removing the current 125% loan-to-value ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac; waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie and Freddie; eliminating the need for new property appraisals in some refinancing transactions; and extending the end-date for the program from June 2012 to Dec. 31, 2013.