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HARP ......... New Changes Coming

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

The Federal Housing Finance Agency (FHFA) on Monday announced substantial modifications to the Home Affordable Refinance Program (HARP), which is a refinance program for borrowers currently owned by Fannie Mae or Freddie Mac who are currently underwater (negative equity in their homes).  HARP was originally developed in 2009, and has not accomplished what it was intended to do. 

The details of the revised program will not be available until November 15, but there is some preliminary information that has been released in the meantime about key changes to the program.  The anticipated changes include:  

  • Removal of the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac.
  • Extension of the end date for HARP until Dec. 31, 2013 for loans originally sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  • Elimination of certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowered fees for other borrowers.

Please keep in mind that this program is NOT mandatory and the implementation of the program will vary as Lenders decide whether to participate or not in the new revised program.  It is unlikely that any Lender will agree to participate in the revised program until the fully understand the “Representations and Warrants” that will not be made available until on or after November 15. 

As soon as there is more reliable information on the revisions, I will post them.

 

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

Posted by

George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
My Blog

I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.

 

Comments(11)

Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- I'll be interested to see how many lenders participate and subsequently how successful this revision of the program will be. I will look forward to getting the latest news from you!

Oct 27, 2011 12:53 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

George -- I hope this program will do what everyone is anticipating.  When you see how much it costs to foreclose and the damage to the properties (especially on the east coast), it seems this type of thing make the most economic sense in the long run.  We will see how this unfolds.  I'm keeping my fingers crossed.

Oct 27, 2011 03:32 PM
Ann Hayden 636-399-7544
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Des Peres, MO
SelectAnn.com

George,

Here is hoping this one helps!

Ann Hayden in Wildwood, MO

Oct 27, 2011 04:41 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George I am also hopeful that this program will benefit many.

Oct 27, 2011 04:54 PM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

George - You are always so helpful and forthcoming with all of the newest information for we Realtors and consumers alike!   Thanks!

Oct 28, 2011 12:17 AM
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTOR® 860-748-8900, Hartford & Tolland County Real Estate

Hi George - Thanks for the information, George.  I had a question, though. If a homeowner refinances for 125%, they will get a lower mortgage payment but they will still have to stay where they are until the market recovers. If it doesn't, will they be in any better shape if they have to sell?  I have people right now who would like to move into larger homes but would have to bring $30,000 to closing just to get out of their current home.  Any thoughts on that?

Oct 28, 2011 01:05 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, thanks for keeping us informed about all the changes...I sure hope something is done to help.  I'll be back to see how you address Peggy's question. 

Oct 28, 2011 05:22 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Barbara, I am looking forward to see the details of the new program myself.

Joan, they have missed the mark on most of what they have put together, so I guess I have doubts about this as well, but I am trying to keep an open mind.

Ann I do to.

Jennifer, we should know better after November 15.

Dagny  I try and I will try to provide any new news on this as soon as I get it.

Peggy I will need to see the details of the revisions when they come out, but my first thought is that you are right.  It may allow them to refinance, but it is not going to put them above water, that will only happen once property values start to go up again.

Nick I don't know if my answer to Peggy helped or just created more confusion :)

Oct 28, 2011 08:50 AM
Michael Rohde
Sunstreet Mortgage LLC. Licensed Mortgage Professional - Tucson, AZ

This is someting I am hoping will help as many more people as the government thinks it will but like you said, and we already know, the big bank overlays take center stage on what will be. Now if only FHA's monthly MI could be cut for the streamline's it would help a lot more people. Good info.  

Oct 28, 2011 02:33 PM
Debbie Walsh
SHAHAR Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

You are a great source of information and I hope this helps as many as they are projecting.

Oct 29, 2011 04:43 AM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

I suggested!   Love your information, always!

Oct 29, 2011 07:11 AM