Harp Just Got Better- HARP Product Revisions / Refinance Guidelines

Product Revisions Posted to HARP Refinance Guidelines

As highlighted below, product revisions have been posted to HARP Refinance Guidelines.

DU Refinance Plus and Freddie Open Access

FNMA and FHLMC have announced that loan limits have remained unchanged for 2013.
 

Cash Reserve Section: Information has been added to clarify what defines a large deposit. Large deposits are defined as a single deposit that exceeds 25% of the total monthly qualifying income for the loan.
 

Credit Section: Information has been added regarding a new requirement for loans with LTVs greater than 125%. The revision states that the mortgage payment history must be 0x30 for last 24 months.
 

Employment Tax Validation Section: Information has been added regarding taxpayer theft and borrowers not required to file tax returns.
 

Hardest Hit Fund Section: Information has been added regarding Arizona eligibility. These changes can be viewed at: www.azhousing.gov.
NOTE: Nevada has run out of funds to continue this program.
 

Income Section: Information has been added regarding additional income types, as well as documentation requirements.
 

Ratio Section: In order to maintain the credit quality of our servicing portfolio for the HARP Refinance Program, WJB is implementing overlays to the maximum DTI allowed. 
The revisions are as follows:

Primary residence: 55%

Second home: 50%

Investment property using subject rental income to qualify: 45%

Investment property not using subject rental income to qualify: 50%

Verbal VOE Section: Information has been revised regarding the requirements surrounding self-employed borrowers:

The borrower’s business must be verified by a third party, such as a CPA, regulatory agency or the applicable licensing bureau, if possible.

The borrower’s business may also be verified via a phone listing and address for the business using a telephone book, the internet or directory assistance.