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November 14, 2012

Frequently Asked HARP Mortgage Refinance Questions

Category: Home Affordable Loans – admin – 12:29 pm

The HARP 2.0 has been one of the few government programs that have actually succeeded in its goal to provide aid for homeowners stuck with an underwater mortgage. For many years, people with negative equity were unable get qualified for mortgage rate refinancing because their loan to value was too high. The latest program from Fannie Mae and Freddie Mac removed the loan to value ratio completely so the ban on underwater refinancing was lifted for any borrower that had a mortgage owned by Fannie or Freddie that was closed prior to the May 31, 2009 deadline.

Will the Homeowners Continue to Seek the Government for Underwater Refinance Solutions in 2013 and 2014?

Lead Planet founder, Bryan Dornan published an article worth reading called, How to Refinance an Underwater Mortgage. There are many indications that President Obama will push a measure that will roll out HARP 3.0 to the pool of borrowers that were outside the boundaries of HARP 2.0.

Question: Can I qualify for a HARP refinance if I am presently delinquent on my mortgage?

Answer:  No, Homeowners who are currently delinquent or have been more than 30 days overdue during the past 12 months generally will not qualify. Contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you

Question: Can I get cash out of a HARP refinance to pay other debts?

Answer: No. The Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts.

Question: I have both a first lien and a second lien mortgage. Do I still qualify for a refinance under HARP?

Answer: Your eligibility will depend, in part, on two additional requirements:

•The lender that has your junior lien mortgage must agree to remain in a junior lien position.

•You must be able to demonstrate your ability to meet the new payment terms on the first lien mortgage.


July 5, 2012

How AIG Is Hurting the HARP Refinance Program for Homeowners

Category: Home Affordable Loans,Home Loan News – admin – 6:53 pm

With all of the media buzz on the HARP loan program you would think that our housing sector would be rebounding sooner than later. You may not want to get too excited because not all reports on HARP home loans are positive. Yes, the HARP helps with high LTV loans for underwater homeowners but not everyone who the program was intended to help is being approved. Business Week published an article worth reading the underscores some of the obstacles that HARP lenders in 2012 are having with the government initiative. American International Group Inc., also known as AIG has a mortgage-insurance unit that maintains policies that may be preventing California homeowners from refinancing their home loan under the HARP 2.0 program. Business Week reported that at least 3 U.S. senators wrote a letter requesting that AIG remove their policies that are hindering HARP lenders in California from approving certain homeowners from refinancing their property in the state. According to the letter written by senators Barbara Boxer of California, Robert Menendez of New Jersey and Herb Kohl of Wisconsin, all Democrats, United Guaranty Corp. is the only mortgage insurer that hasn’t removed barriers to a “mortgage refinance” in conjunction to the HARP 2.0 program.

The unit of the bailed-out insurer is unwilling to offer the same protections on defective loans that competitors are granting to aid the Home Affordable Refinance Program, Bloomberg News reported in November. President Barack Obama has said expanding HARP will make cheaper credit available to more homeowners with mortgage rates near record lows. “United Guaranty’s policies are harmful both to your customers and to the taxpayers,” the senators wrote in the letter. “This is particularly troubling given that United Guaranty is a subsidiary of American International Group, which itself has benefited from taxpayer assistance.”

According to Business Week, United Guaranty has participated in Home Affordable Refinance Program since 2009 and refinanced more than $5.3 billion worth of mortgages, the firm said in an e-mailed statement. The statement revealed that “United Guaranty’s review of new servicer loans in no way interferes with borrowers’ ability to take advantage of HARP refinancing or other modification plans that assist families in measures to retain their houses.”

Read the original Business Week article about the insurance companies hindering the refinance plan.


June 14, 2012

HARP Loan Spreading Home Affordability Across America

Category: Government Loans,Home Affordable Loans – admin – 8:17 am

Obama sent a message to Congress last year when he endorsed the HARP 2.0 program. This was the second coming of the Home Affordable Refinance Program, but this time Fannie Mae and Freddie Mac doubled down. The HARP 2.0 used to have 125% LTV cap on refinancing, but now they completely removed all “loan to value” restrictions. This has opened up the flood gates for people stuck in an underwater mortgage to refinance into a new home loan. This Home Affordable Program offers a true solution for borrower that have an upside-down mortgage.

Many homeowners remain unclear as to whether they qualify for HARP refinancing. The HomeLoanWholesale.com recently published a directory of HARP lenders that may be able to answer your questions and verify your eligibility for the HARP 2.0.

New Changes wіth HARP Loan Include:

-Prolonging thе еndіng dаtе оf HARP untіl December 31, 2013

-Eliminating thе necessity оf а nеw appraisal whеn thеrе іs а sufficient аnd reliable AVM.

-Eliminating thе 125% LTV ceiling fоr fixed rate mortgages whісh wаs required bу Fannie Mae & Freddie Mac.

-Removing сеrtаіn risk based fees fоr borrowers whо refinance іntо shorter term mortgages аnd dropping fees fоr оthеr borrowers.

-Waiving раrtісulаr representations аnd warranties thаt lending institutions commit tо іn generating loans owned аnd guaranteed bу Fannie Mae & Freddie Mac.

The HARP loan program fоr eligible homeowners in all 50 states. Fоr mоrе іnfоrmаtіоn, рlеаsе feel free tо call Fannie Mae оr Freddie Mac Directly at:

Toll Free – (800) 7fannie

Toll Free – (800) Freddie, Option 2-