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The Homeowner Affordability and Stability Plan (HASP), summary and analysis

By
Mortgage and Lending with LX Financial LLC
The Homeowner Affordability and Stability Plan (HASP) is by and large good news. The devil is often in the details with newly announced initatives, and I will keep you posted as more specifics become known. March 4 is the date when most initiatives launch. The plan will help many, but not all - and lenders are incented to help, but they don't have to. Read more
 
HASP highlights
  • Refi's up to 105% LTV
  • Government subsidized loan modifications to 150% LTV
  • Uniform guidance for loan modifications
  • Bankruptcy judges can modify loans
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    HASP information
  • Executive Summary (Dept of Treasury)  Read
  • Fact sheet (Dept of Treasury)  Read
  • Q&A for borrowers not in default  Read
  • Q&A for borrowers in default  Read

    Not all modifications fit under HASP

    Modification eligibility under the plan is (or will be) defined - but the actual modification formula is not. Lenders are not required to include any loan under the plan, and each lender will have a unique approach to eligibility and what modifications will look like. Also some situations do not fit under the plan at all, including:
    1. Second mortgages
    2. Properties other than primary residence
    3. Jumbo loans (over $417,000)
    4. Private label loans: non-FHA and non-GSE (Fannie, Freddie, VA, others) loans
  •  
    Rates for all products down
    For the week ending Feb 19th the 30-year fixed averaged 5.04% with an average 0.7% fee, down from last week when it averaged 5.16%. This time last year it averaged 6.04% Freddie Mac rate surveys.
     
    Available now...
  • Jumbo loans at near non-Jumbo rates
  • Helocs in 1st position to 75% LTV
  • ARMs starting at 3.75%
     
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