The big news this week is HARP.
THE Home Affordable Refinance Program has been “re stringed”
HARP was designed to assist distressed borrowers who are current on their mortgages but “underwater” meaning they owe more than their home is worth.
It’s no surprise several studies identified these borrowers as being likely to strategically default on or walk away from their homes and foreclose.
While regulations won't be finalized until November 15th the changes to “Harp 2” include -
•Removing the 125 percent loan-to-value. •Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.
•Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the GSEs
•Eliminating certain representations and warranties required of lenders to obtain the GSE guarantee. This will protect lenders from many of the buy-back requirements they face under current guidelines
•Extending availability of the program through the end of 2013
These changes may allow double the homw owners the opportunity to refinance but still will help only borrowers who are current on their payment and who have loans guaranteed by one of the GSE's, Fannie or Freddie prior to July 2009. Thus it will impact only a small percentage of underwater borrowers.
Credit Suisse estimates 720k borrowers will be able to refinance which translates to between $2 and $3 billion in interest savings; so HARP 2 will not have a huge effect on the economy or on the real estate market.
To find out if your home is owned by Fannie or Freddie you can contact my team at firstname.lastname@example.org .
The program is set to come out November 15th 2011.
The New Government Refinance Program Alameda
Don’t Stop Believing – Camille and Kennerly -
I searched “2 harps” and now my wife and I are huge fans!!!!