Fannie Mae and Freddie Mac' s Home Affordable Refi enhancements will be released in phases with the first version of HARP 2.0 becoming available tomorrow, December 1, 2011. The next phases will allow for expanded loan to value requirements and pricing enhancements. Fannie Mae will have an update to their selling guide in mid-December (so more information to follow). Freddie Mac and Fannie Mae plan on having their underwriting system (DU and LP) updated on or before mid-March 2012. I will continue to keep you posted as we learn more information.
Here's my recommendation for Washington area home owners who may be eligible for a Home Affordable Refinance:
- You can apply for HARP 2.0 tomorrow, December 1, 2011.
- We should be able to determine whether your loan qualifies based on the current "phase" available. We are able to re-run your scenario during the next phase of HARP, if needed.
- Loan to values under 80% may not qualify for the new Home Affordable program but you may still be able to take advantage of today's lower rates.
- Some of my refinance clients have already had their appraisals waived with their Fannie-to-Fannie DU Plus refinances.
- Unless you have an owner occupied or second home and are opting for an amortized mortgage of 20 years or less, the pricing difference with HARP 2.0 may not be that significant.
- I'm happy to provide you with a Home Affordable Refi rate quote.
Here are some pointers on what you can do to prepare for your Home Affordable Refinance.
I'm still waiting to hear from all of the private mortgage insurance companies to see if and how they will participate in this program. We are also waiting to see how the lenders and banks we work with are going to treat this and if they've added layers of overlays to this program.
UPDATE 12/15/11: If you qualify for a HARP refinance and have borrower paid private mortgage insurance, as long as the insurance can be transferred, we can help you. Lenders (secondary markets) and private mortgage insurance companies are working on allowing this for lpmi (lender paid mortgage insurance). More info on LPMI to follow.
I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:
Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes. If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP. You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/
If you have any questions about this or any mortgage program and your property is located in Washington state, I'm happy to help you. I am only licensed to originate mortgages in Washington state.
Bottom line: we are still receiving (and waiting to receive) more information about the HARP 2.0 enhancements and bank/lender overlays. However you can start your application on December 1, 2011 and "float" your rate, if needed.