On October 24, 2011 the Federal Housing Finance Agency (FHFA) provided an industry wide news release detailing the much needed enhancements to the current HARP program (Home Affordable Refinance Program). Introducing What is HARP 2.0? Since the initial HARP roll out, only 894,000 homeowners have been assisted by this initiative instead of the expected millions that the plan was designed to help.
- Some of the key aspects that have prevented HARP to achieve its’ intended goals are now addressed with these enhancements which include:
- Eliminating certain risk-based fees for borrowers who refinance into shorter- term mortgages an lowering fees for other borrowers
- Removing the current 125 percent Looan-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 Mae and Freddie Mac;
- Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises;
- Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the GSE’s on or before May 31, 2009.
FHFA Acting Director Edward J. DeMarco stated:
Ed Demarco HARP Program Ed Demarco HARP Program
“Building on the industry’s experience with HARP over the last two years, we have identified several changes that will make the program accessible to more borrowers with mortgages owned or guaranteed by the Enterprises. Our goal in pursuing these changes is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets.”
Hopefully, this ” What is HARP 2.0 ” article has been helpful. Make sure you get all of your questions answered by speaking with a qualified mortgage industry professional and see if it makes sense for you to take advantage of this program.
FOR MORE RESOURCES & INFORMATION CONTACT STEVE MANCILLA
CERTIFIED MORTGAGE PLANNER and HARP SPECIALIST
619-453-0954 Tel. / www.HARP.REOFCA.com / Steve@REofCA.com