How is it that I get only 1 in 15 HARP 2.0 loans approved and I hear about the HARP 2.0 successes?
I think I have found out that it is a matter of reporting loans in certain categories. Recently I was at a beach picnic and a fellow told me that his bank contacted him and told him that he would qualify under the HARP 2.0 program.
HARP 2.0 was designed for those homeowners who are underwater; those who have a home value less than the loan amount.
I asked the person how much his home was worth. $900,000.
Then I asked how much he owed on the mortgage - $300,000.
Further questions revealed that the customer has a credit score of over 800 and that his debt ratio qualified for the loan.
This person qualified for any conventional loan but the bank was soliciting him under the HARP 2.0.
The solicitation came from his mortgage holder and I saw the solicitation and the words HARP 2.0 in the first sentence. The bank knows his loan to value and they know the quality of loans. Maybe it was a bank error - who knows but I do know that a HARP 2.0 approval is a rare thing.
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