Good news on the refinance side or mortgage lending!
HARP 2.0 will help. HARP 1.0 and DU Refi Plus programs were widely criticized as well, but in the end many bankers/brokers were able to market this program to better serve their clients and increase production. Nothing out of Washington is perfect, or even close to it, but HARP 2.0 is a step in the right direction and will help those who are ready to embrace (i.e. market) it. Lenders and investors alike are already operating at increased capacity and scrambling to improve efficiencies and turn times in order to turn over their lines. Many bankers/brokers are already overwhelmed with business and have pipelines that will keep them more than busy for the next few months.
HERE’S WHAT WE KNOW… It will still take some time to actually have HARP 2.0 hit the market. Loan Prospector won’t be updated for a month or two and correspondent investors have yet to announce their overlays, pricing, and when they’ll be accepting submissions. I am not sure anyone with agency approvals would be comfortable manually underwriting a HARP 2.0 loan today at say 125 ltv. May it take a while? Sure. Will there be overlays? Count on it. But will you be able to market and originate a new program to help a client base which would have no hope of improving their situation? Yes!
We’re going to be hit with a lot of details over the next month or two so stay tuned…I hope everyone is ready to help potential clients take advantage of higher ltv’s!
I think early/mid-early 2012 you will see many of these changes. I welcome any email questions about these products!