Today President Obama answered questions submitted by social media savvy Americans which was moderated by Zillow CEO, Spencer Rascoff. It seemed to me the most common questions were concerning HARP 3.0. HARP 3.0 (Home Affordable Refinance Program) is currently a hypothetical expanded version of HARP 2.0 and would allow for more home owners, including those in Washington state, to refinance their homes at present low rates.
Nobody knows for certain what HARP 3.0 would include. Home owners who have been waiting for HARP 3.0 are probably hoping for:
- the cut off date of June 1, 2009 to be removed or expanded. For HARP 2.0, a conventional mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. The securitization process takes place after closing and this is something that borrowers have no control over (when it happens).
- program to be expanded to mortgages that are not securitized by Fannie Mae or Freddie Mac.
- allowing “re-HARPing”. Re-HARPing would allow home owners who have already refinanced with the HARP program at a higher rate, to refinance again.
President Obama seems to be completely for HARP 3.0. During this event, he encouraged everyone who was watching, who wants HARP 3.0 to contacted their elected officials in Congress.
When and if HARP 3.0 does become available, I will be sure to post it here!