Posted by PegiT_MN on 1/13/12 1:28pm
Msg #408954

Never Fear.....Lot's of Good Busines is Near.....

......according to mortgage professionals in my area. It appears that business is at somewhat of a standstill right now because everyone is waiting for the March 1st HARP 2.0 guidelines to take affect. The new expanded HARP guidelines will allow lenders to go to 150% LTV with no appraisal. It sounds like everyone is just waiting until March 1st.

Reply by ME/NJ on 1/13/12 2:23pm
Msg #408956

Please let me know what bank will do this loan? None of them will do this program it would be like 2008 all over in a short time.

Anyone counting on HARP is crazy.

Plus if any bank does give a loan out of 150% how many months from March do you think it would take to reach table? My guess September

Reply by PegiT_MN on 1/13/12 2:32pm
Msg #408958

It sounds like a lot of the banks are doing this loan as it is part of the Obama HARP expanded 2.0 program. I don't think anyone is counting on HARP, I just made a general comment about what mortgage professionals are saying in my area as to why it is slow right now and as to why they say business will be picking up. People can take it or leave it. From my understanding of this program, the loans go quick as there is no appraisal.

Reply by nez on 1/13/12 3:43pm
Msg #408971

This will never be a good idea.....no appraisals, fixed appraisals, and the LTV's is the reason the housing market looks the way it does today. People bought homes that could not afford them the day they signed the papers. Banks would be crazy to be part of this....

Reply by jba/fl on 1/13/12 4:38pm
Msg #408977

That was my first thought also. People are supposed to look at the past, learn from the mistakes and find a new way, not just do them over. When will this insanity stop?

Reply by PegiT_MN on 1/13/12 7:55pm
Msg #409007

Most of the major banks have been doing this HARP program for almost three years now. I would venture to guess that a lot of the loans you have been closing have been HARP loans (Home Affordable Refinance Program) up to 105% LTV without an appraisal. This is not a cash out loan. This is not a bail out loan. This is not a principal reduction loan. HARP is part of the Obama program to help everyday homeowners who have never missed a mortgage payment refinance their home into a lower interest rate. Why should Mr. and Mrs. Borrower who bought their $500,000.00 dream home 8 years ago at a 6.5% interest rate, put down $50,000.00, and have always made their payments on time, not be able to refinance into a 30 year fixed rate mortgage for 4.5% or even a 10 year fixed rate mortgage for 3.875% just because many of the homes in their neighborhood foreclosed and now their value has went from $500,000.00 to $300,000.00? Even though they put money down, have made their mortgage payments on time, have excellent credit, they are unable to refinance because they have no equity. What are their options? Should they continue to pay 6.5% when the going rate is 4.5%? Should they just walk away from the home like so many other people did? Or should they refinance with this HARP program that will give them a much better loan and will prevent them from adding yet another home to the sea of foreclosures out there?

The original HARP program was only supposed to last for one year, and it has ended up going for almost three years. I was an underwriter in 2009 when one of the major banks first rolled this program out. The success of this program has enabled President Obama to extend this program and expand the guidelines to allow 150% LTV without an appraisal.

Again, this is not some crazy program letting people take cash out of their homes to 150% LTV without an appraisal. This is a program with very strict governmental guidelines that allows the everyday homeowner to improve their financial situation by allowing them to refinance their home for a better interest rate, shorter term, lower monthly payment, in a struggling housing market that would have never allowed them to qualify for anything better due to no fault of their own.

Reply by jba/fl on 1/13/12 8:04pm
Msg #409008

Explained like that, I retract my post due to lack of

understanding the HARP loan program. I appreciate the explanation; as you can see, my first thought was way off base.

Reply by PegiT_MN on 1/13/12 8:15pm
Msg #409009

Re: Explained like that, I retract my post due to lack of

Here is some great reading about HARP if anyone is interested.

http://www.azcentral.com/news/articles/2012/01/06/20120106phoenix-area-underwater-homeowners-help-coming-march.html

Reply by Claudine Osborne on 1/13/12 8:46pm
Msg #409012

Re: Explained like that, I retract my post due to lack of

Nice explanation Pegi!

Reply by LynnNC on 1/15/12 3:36pm
Msg #409093

"Most of the major banks have been doing this HARP...

program for almost three years now."

I close about 50 loans a month and have never had one.

.

Reply by ME/NJ on 1/13/12 9:09pm
Msg #409013

Like I said- Direct quote from article

" Much of the delay introducing the expanded refinancing program has been because of slow negotiations with lenders, and it is still not clear if the nation's biggest banks will participate, market watchers say.

The government struggled to get big lenders to cooperate with another program, a loan-modification plan that would reduce payments for struggling homeowners.

It's likely to take lenders a few months to implement the expanded refinancing program, so it may not be clear until summer "



Read more: http://www.azcentral.com/news/articles/2012/01/06/20120106phoenix-area-underwater-homeowners-help-coming-march.html#ixzz1jOlB7wdi

Reply by Ali/IL on 1/14/12 11:12am
Msg #409036

Re: Like I said- Direct quote from article

Lenders are having borrowers sign the packages now with settlement date later this month. That is when they will be putting them through.
Note,rtc mortgage etc. will have later dates on them. The right to cancel itself does not have a signature line but, a form that says that they acknowledge receiving two copes which are not in the package that borrower receives beforehand.
Anyone seen these?

Reply by PegiT_MN on 1/14/12 4:19pm
Msg #409062

Re: Like I said- Direct quote from article

I think you are talking about the Citi Bank streamline refinance program. I have been doing a lot of them. Great program.

Reply by Ali/IL on 1/14/12 5:38pm
Msg #409064

Re: Like I said- Direct quote from article

Yes it is

Reply by Eve/VA on 1/15/12 6:38am
Msg #409081

I've been told the same by LOs -- to get ready n/m