California, Arizona, Nevada and Florida – the so-called Sand States that have seen the most severe declines in house prices – were at the head of the line as Fannie Mae and Freddie Mac removed loan-to-value limits under the Home Affordable Refinance Program earlier this year. Refinance mortgages with loan-to-value ratios exceeding 125 percent accounted for just 2.5 percent of HARP business in the first quarter, as the government-sponsored enterprises just got started buying such loans for cash. A securitization option for these loans only became available in June. But 13.1 percent of HARP loans in Nevada were...[Includes one data chart]