In a positive development, the government agency that regulates the housing industry has announced key changes to the 2 year old HARP program that may open the door to refinancing for a million or more US homeowners. Key components of the revised program include:- Extension of the program throughDecember 31, 2013
- Eligible loans must have been purchased by Fannie Mae or Freddie Mac after May 31, 2009 and have a loan-to-value ratio of greater than 80%
- Removal of the 125% of current value loan cap
- Elimination of risk fees if refi into shorter term loan, fee reduction if refi into 30 year loan
- Homeowners must be current on loan for previous six months
- New appraisal may not be needed
- Lenders protected from buybacks (except in case of fraud)
Lenders have not been provided guidelines for implementation of the program but will receive them by November 15, 2011. Lender participation is not mandatory but wide participation is expected.
Total Mortgage Services, LLC is prepared to guide you through the HARP refinance process with mortgage professionals who are experienced and determined to improve the financial position of their clients.
The new updates as announced by the President regarding the Home Affordable Refinance Program (HARP) will make the program more popular amongst the masses. As per the updated HARP, more number of people will be able to refinance their underwater loans as the current value loan cap of 125% has been removed. Due to this cap, a large number of people in the states of Florida and California, which were hardest hit by foreclosures, were not able to take advantage of HARP. It is expected that lenders will start offering this new HARP to homeowners on or after December 1st, 2011.
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