Posted by Eve/VA on 12/28/11 10:17am
Msg #407680

Housing Assistance and Recovery Program (HARP)

A friend, who is a loan officer, keeps telling me to get geared up to be very busy starting end of January because of the HARP legislation kicking in. I need to research this further but I think its refis/loan mods for homeowners under water with FreddiMac and FannieMae loans.

Sounds good to me. Any of you know much about this?

Thanks!

Reply by Eve/VA on 12/28/11 10:18am
Msg #407681

oops Freddie Mac

Reply by Susan Fischer on 12/28/11 10:45am
Msg #407684

Don't know if it was a HARP loan, but my sister just

refied for 3.25%/15yr. She wasn't upsidedown, though, so it probably was another product. Either way, it's a good thing, no?

Reply by Eve/VA on 12/28/11 11:03am
Msg #407690

Re: Don't know if it was a HARP loan, but my sister just

Yes, good news!

My loan officer friends say more homeowners will be eligible to refinance and because of the heavy demand, notaries will be utilized more than ever.

After I posted this, I searched HARP on here and saw a few other comments.

Reply by Riley/FL on 12/28/11 12:34pm
Msg #407693

Re: Don't know if it was a HARP loan, but my sister just

Chase has been offering these for over a year now. Sort of a preemptive strike, they are offering lower rates and no fees to all their current customers BEFORE they get into trouble paying their loans.

Reply by Yowheelz on 12/28/11 3:25pm
Msg #407723

No Notary Required

Under the Making Homes Affordable Program you recieve loan modifications from your lender . My husband and I did one but we did not have to get any docs notarized so don't hold your breath on additional work.

Reply by redd on 12/28/11 3:34pm
Msg #407725

Re: No Notary Required

I would think for modifications that's quite possible but not for a refinance.

Reply by PegiT_MN on 12/28/11 12:37pm
Msg #407694

I'm not sure what this Housing Assistance and Recovery Program your friend is speaking of, but the original Obama HARP program (Home Affordable Refinance Program) has been in existance for almost three years. It was originally supposed to only last for one year, but it keeps getting extended. It originally allowed homeowners to refinance at 120% LTV without an appraisal, provided that their loan was currently held by Freddie or Fannie. I have recently heard from one of my investor friends that Obama has not only extended the program but expanded the HARP program as well to allow an even higher LTV without an appraisal to allow more people to take advantage of this program. Whatever people are calling it these days, HARP will definitely expand our business this year.

Reply by Eve/VA on 12/28/11 1:21pm
Msg #407697

(HARP) Thanks for the input

It has been around for a while. I'll have to find out more re why she thinks it's going to be a big deal early this year.

Reply by GOLDGIRL/CA on 12/28/11 2:01pm
Msg #407705

More info


From DSNews.com (10/24/2011):

It’s official. The Federal Housing Finance Agency (FHFA) unveiled a new, revamped government mortgage refinancing program Monday.

The initiative involves a series of rule changes to the Home Affordable Refinance Program (HARP) to allow more underwater homeowners to reduce their mortgage debt by taking advantage of today’s rock-bottom interest rates.

Mortgages backed by Fannie Mae and Freddie Mac, and originally sold to the GSEs on or before May 31, 2009 are eligible for the program.

Under the revised HARP guidelines, the 125 percent loan-to-value (LTV) ceiling has been eliminated. Previously, only borrowers who owed up to 25 percent more than their home was worth could participate in HARP. That limitation has now been removed. The program will continue to be available to borrowers with LTV ratios above 80 percent.

The new program enhancements address several other key aspects of HARP that industry participants say have restricted its impact, including eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers, as well as allowing mortgage insurers to automatically transfer coverage from the original loan to the new loan.

In addition, Fannie Mae and Freddie Mac have done away with the requirement for a new property appraisal where there is a reliable AVM (automated valuation model) estimate already provided by the GSEs, and they’ve agreed to waive certain representations and warranties on loans refinanced through the program.

Not only are loans eligible for HARP considered “seasoned loans,” but a refinance helps borrowers strengthen their household finances, reducing the risk they pose to the GSEs. Thus, FHFA feels reps and warranties are not necessary for some of these loans.

With Monday’s announcement, the end date for HARP has been extended from June 30, 2012 to December 31, 2013.

The GSEs will release program instructions to lenders by the middle of next month, and FHFA expects some lenders will be ready to accept applications by December 1.

Since HARP was rolled out in early 2009, approximately 1 million homeowners have refinanced their mortgage loans through the program. FHFA estimates that with the revised guidelines, another 1 million will be able to take advantage of the program.

To qualify, borrowers must be current on their mortgage payments, but government officials believe by opening HARP up to more homeowners with higher thresholds of negative equity, it will help to prevent foreclosures by erasing the primary motivation behind strategic defaults.

Economists at the University of Chicago Booth School of Business estimate that roughly 35 percent of mortgage defaults are strategic. Numerous industry studies have found that homeowners who owe significantly more than their home is worth are more likely to throw in the towel and walk away from their mortgage debt even if they have the ability to continue making their payments.

“We anticipate that the package of improvements being made to HARP will reduce the Enterprises credit risk, bring greater stability to mortgage markets, and reduce foreclosure risks,” FHFA stated in its announcement Monday.

Fannie Mae and Freddie Mac also released statements in response to the announcement.

Michael J. Williams, Fannie Mae’s president and CEO, called the program a “welcome development.”

“By removing some of the impediments to refinance, lenders can more easily participate in the program allowing more eligible homeowners to take advantage of the low interest rates,” Williams stated.

Charles E. Haldeman, Jr., CEO of Freddie Mac said, “These changes mark another step on the road to recovery for the nation’s housing market.”

Reply by JimAZ on 12/28/11 7:40pm
Msg #407745

Re: More info

"Under the revised HARP guidelines, the 125 percent loan-to-value (LTV) ceiling has been eliminated. Previously, only borrowers who owed up to 25 percent more than their home was worth could participate in HARP. That limitation has now been removed. The program will continue to be available to borrowers with LTV ratios above 80 percent. "

Thanks for all the information. Does this mean there will be no limit on LTV ratios? In other words, could there be 200% LTV ratios under the new program?

Reply by Blueink_TN on 12/28/11 9:11pm
Msg #407747

Finally!

This is going to open the door for hundreds of thousands of homeowners (mainly in FL and CA) to refinance to the current interest rates. This ruling should STOP THE BLEEDING!