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.
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