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.

 

**************************************************************************************************************************************************

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 on 10/27/2011 07:05 PM   Comments (11)   HARP in the Mortgage / Finance Channel   harp refinace program  
Originally posted at: George's Blog: HARP ......... New Changes Coming
Generate short URL
This post has been included in Connecticut Real Estate News
Post is included in group: Mortgages
Post is included in group: Real Estate Rookie
Post is included in group: Realtors®
Post is included in group: What is New in Loan Products

11 Comments on HARP ......... New Changes Coming

OCT
27
2011
482,641 Points 15 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

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!
7:53pm • #1
876,116 Points 18 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

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.
10:32pm • #2
655,834 Points 3 Featured Posts Outside Blog Called Shot Master

George,

Here is hoping this one helps!

Ann Hayden in Wildwood, MO
11:41pm • #3
1,174,515 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

George I am also hopeful that this program will benefit many.
11:54pm • #4
OCT
28
2011
678,305 Points 18 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

George - You are always so helpful and forthcoming with all of the newest information for we Realtors and consumers alike!   Thanks!
7:17am • #5
421,610 Points 12 Featured Posts Called Shot Master

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?
8:05am • #6
786,116 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

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. 
12:22pm • #7
1,388,549 Points 255 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

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 :)
3:50pm • #8
1 Featured Post Outside Blog

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.  
9:33pm • #9
OCT
29
2011
633,430 Points 13 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

You are a great source of information and I hope this helps as many as they are projecting.
11:43am • #10
678,305 Points 18 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

I suggested!   Love your information, always!
2:11pm • #11

Login or register to leave a comment
 
George Souto (George Souto NMLS# 65149 FHA, CHFA, VA Mortgages Connecticut) Ambassador_large

George Souto

Middletown, CT

More about me…

George Souto NMLS# 65149 FHA, CHFA, VA Mortgages Connecticut

Address: One Liberty Sq., PO Box 1000, New Britain, Ct, 06050

Office Phone: (860) 573-1308

Cell Phone: (860) 573-1308

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog