HARP 2.0 exceeds FHFA’s expectations

March 13, 2013 by 1 Comment

FHFA has published their 2012 Refinance Report which includes some interesting stats on the Home Affordable Refinance Program (aka HARP 2.0).  HARP 2.0 is a program to help home owners who have lost home equity refinance their property as long as the mortgage was securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. You can learn more about HARP 2.0 by checking out my guide.

December’s refinance report revealed that since the inception of HARP 2.0, over 2 million home owners have benefited from a HARP refinance. 

  • 88% of HARP refinances have been owner occupied/primary residence
  • 9% have been for investment properties
  • 3% were second or vacation homes

According to the FHFA Refinance Report, 25% of the transactions in December were for homes that were significantly underwater, with loan to values over 125%. Almost half the refinances were for homes with loan to values over 105%.

One of the benefits of a HARP 2.0 refinance is that it allows the home owner to refinance without getting new private mortgage insurance regardless of loan to value. If the home owner currently has pmi, it needs to transfer to the new HARP refi (this happens in a majority of cases).

The report states that 18% of those who did a HARP refinance in December 2012 opted for shorter terms (15 or 20 year) instead of a 30 year fixed.

Remember, the HARP 2.0 program is set to expire on December 31, 2013. 

If your home is located in Redmond, Renton, Ravensdale or anywhere in the State of Washington, where I’m licensed to originate mortgages, I am happy to help you. Click here if you would like a mortgage rate quote.

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Home Affordable Refinance Program: HARP 2.0 Updates

February 17, 2013 by Leave a Comment

I’m pleased to share with you that we are working with lenders who are once again offering HARP 2.0 refinances with no appraisals (no loan to value requirements). Last year, our Freddie Mac resource for loan to values over 105% decided to pull out of the market, we now have another lender who is offering this product without loan to values overlays. This is great news for Washington state home owners who have lost equity in their homes (are underwater) and have a mortgage securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. 

For more information about HARP 2.0 refinances, please check out my reference guide.

We also received updated guidelines from one of our Freddie Mac HARP lenders for loan to values 105% and lower offering reduced income documentation and expanded debt-to-income ratio guidelines. It’s nice to see lenders loosen up a bit on some of their underwriting overlays!

Fannie Mae HARP refinances are still readily available.

For your HARP 2.0 refinance rate quote on your home located anywhere in Washington state, please click here.

HARP 2.0 Refinances are available for:

  • mortgages that were securitized by Fannie Mae or Freddie Mac prior to June 1, 2009
  • primary residence, second/vacation homes or investment property
  • mortgages that have not yet taken advantage of the HARP refinance program
  • existing private mortgage insurance (including LPMI) is allowed in most circumstances

I am required to use the following language if I am soliciting business…and of course, I would love to help you with your HARP (or any) refinance for your home located in Washington State:

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

NOTE: If your Washington state home currently has an FHA mortgage, owner occupied or investment property, we can help you refinance without an appraisal – regardless of your home’s current value. 

I’m happy to help you with your home refinance or purchase needs as long as your home is located in Washington state, where I’m licensed to originate mortgages.  For mortgage rate quotes for homes other than HARP, please click here.

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HARP 3.0 Update

February 12, 2013 by 10 Comments

 Last week, Senators Boxer and Menendez reintroduced a bill to Congress that would allow more “responsible home owners” to refinance under the Home Affordable Refinance Program (aka HARP 3).

From the Press Release:

The current average interest rate for a 30-year mortgage is 3.53 percent – a rate that remains near its historical low. Nevertheless, there are nearly 12 million homeowners with loans guaranteed by Fannie Mae and Freddie Mac who could benefit from refinancing, many of whom cannot refinance at a lower rate because of unnecessary red tape and high fees. That red tape has limited competition among banks, so borrowers – even those who are able to refinance – end up paying higher interest rates than they would if they were able to shop around.

Under the Administration’s current refinancing program (HARP), an average homeowner saves about $2,500 per year. This bill would increase the amount they could save and expand refinancing opportunities for millions of eligible borrowers.

S. 249, The Responsible Homeowner Refinancing Act of 2013 removes the barriers preventing these Fannie Mae and Freddie Mac borrowers from refinancing their loans at the lowest rate possible. The bill would:

  • Ensure that streamlined refinancing is available and consistent for all Fannie and Freddie borrowers, regardless of whether they are underwater or not

  • Reduce up-front fees on refinances

  • Eliminate appraisal costs for all borrowers

  • Remove additional barriers to competition

  • Extend HARP by one year, to allow eligible borrowers more time to access the program.

From this press release, I’m not seeing where this bill would help responsible home owners who do not have mortgages securitized by Fannie Mae or Freddie Mac nor am I seeing that this bill would remove the requirement that the mortgage be securitized prior to June 1, 2009.

Stay tuned…I’ll continue to keep you posted.

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HARP 3.0 and #MyRefi Update

January 29, 2013 by Leave a Comment

An article published today by Bloomberg Businessweek gives some hope of HARP 3.0 and #MyRefi (aka the Obama Refi) becoming available to underwater home owners.

Many responsible home owners who have not been able to refinance under the current guidelines of HARP 2.0 because either their existing home mortgage was securitized after June 1, 2009 by Fannie Mae or Freddie Mac OR because their existing mortgage is not securitized by either Fannie or Freddie. 

The Home Affordable Refi Program was created to help home owners who have lost equity in their homes and would otherwise qualify to refinance (they have employment, income and good credit).

In today’s article, the Treasury may overstep Congress to help make the expanded program that many have been hoping for a reality. From Bloomberg Businessweek: 

Treasury may act unilaterally to aid borrowers who owe more than their homes are worth if Congress doesn’t pass legislation providing assistance, Stegman, a counselor on housing policy for the agency, said at an American Securitization Forum conference.

“Legislation would facilitate a refinance, whereas under our existing authority, Treasury could only modify the most deeply underwater loans and pay investors for some amount of forgone interest,” Stegman said.

Stay tuned!

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Waiting for HARP 3.0? You can sign this Petition.

January 15, 2013 by 49 Comments

A petition to remove the securitization date with HARP 2.0 is making it’s way through social media. Currently, in order for a mortgage to qualify for a Home Affordable Refinance (HARP 2.0), the mortgage needs to have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. Securitization has nothing to do with when a loan closed and it often takes place weeks or sometimes months after closing.

Many home owners have felt burned by this cut-off date as they have no control over when Fannie or Freddie securitized their loan yet they’re being punished by not being allowed to use this program to refinance. 

The petition is also asking the home owners who have already refinanced using the HARP program, to be allowed to “re-HARP” or refinance again under the HARP program.

Click here for more information about the Home Affordable Refinance Program (HARP).

Congress and the Obama Administration has been discussing the possibility of changing guidelines to the Home Affordable Refinance Program, including removing or extending the securitization date among other things. The revamped program, which may also be open to loans not securitized by Fannie or Freddie, has been referred to HARP 3.0 or #MyRefi.

The petition was created last week is trying to reach 25,000 signatures by February 8, 2013. 

Under the Home Affordable Refinance Program (HARP) The Director of The Federal Housing Finance Agency has authority to extend or eliminate the eligibility cutoff date. Currently the date is set as 5/31/09. Many responsible home owners are unable to take advantage of the program to reduce their mortgage rates because of this date. On 3/17/12 HARP was revamped (HARP 2.0) and home owners were given the power to shop for the best rates. However, those who previously refinanced under the original program are not eligible because of the the arbitrary cut off date and 1 time use limit set by FHFA Director Edward DeMarco. Eliminating the cutoff date and allowing home owners a 2nd chance to refinance under HARP 2.0 would help millions of Americans to save money on their monthly mortgage payment.

You can sign the petition by clicking here.

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Reader Question: WHEN did Fannie Mae securitze my mortgage?

January 5, 2013 by 1 Comment

This question is from a comment on one of my blog post addressing HARP 2.0’s eligibility date (Home Affordable Refinance Program), which many home owners have found to be a source of frustration. In order to qualify for the HARP 2.0 program, the mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. Securitization takes place after the closing of the loan and is completely out of the borrowers control.

This person is being told their loan was securitized YEARS after it closed in 2003. It is possible that the lender had to wait a long period of time before being able to sell the loan to Fannie. 

I highly recommend checking Fannie Mae’s site at https://www.knowyouroptions.com/loanlookup to verify if and when your mortgage is securitized by Fannie Mae. 

Fannie Mae recently made improvements to their loan lookup site with getting rid of their terrible (sometimes comical) “bot” filter by replacing it with the borrowers last four of their social. 

You will need to enter in the information of the primary borrower from when the mortgage was obtained. The site can be picky as to your address, for example, Ave vs Avenue; so you may have to try re-submitting your information.

“Match Found” means that Fannie Mae shows they have a mortgage on this property and that it may qualify for HARP 2.0. The improved site also provides the date the loan was securitized. A “match found” response does not guarantee that someone will qualify for the HARP 2.0 refinance program.

Fannie Mae HARP 2 0
 

Back to my reader…

Should you verify with Fannie Mae’s site that your property was securitized with Fannie Mae prior to June 1, 2009, I would contact a local licensed mortgage professional to help you with your HARP 2.0 refinance.

I’m not sure what “independent site” was used to verify. Fannie Mae’s site would be the ONLY site I would use for verification of a Fannie Mae securitized mortgage.  

Should you find that your mortgage was securitized after the June 1, 2009 cut-off date, you may have to wait and see if Congress passes HARP 3.0 (aka #myrefi) which hopefully will remove the cut-off date. 

In my opinion the cut-off dates with the HARP 2.0 programs are hurtful for consumers who had no control over when their mortgage was securitized by Fannie Mae or Freddie Mac. I hope HARP 3.0 is available soon.  When and HARP 3.0 is available, I will be sharing that information here on my blog.

By the way, Freddie Mac also has a website for verifying if your mortgage was securitized by Freddie. If your conforming loan was not securitized by Fannie Mae, the next step is to try Freddie Mac’s site to look up your loan: https://ww3.freddiemac.com/corporate/   Fannie Mae has a majority of the “market share” which is why I recommend trying Fannie Mae first.

If your home is located anywhere in Washington State, I’m happy to help you with your HARP(or any) refinance.

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Fannie Mae and Freddie Mac improve HARP 2.0 Underwriting Guidelines

September 18, 2012 by 2 Comments

On Friday, Fannie Mae and Freddie Mac announced much needed updates to underwriting guidelines for HARP 2.0. The Home Affordable Refinance Program (HARP 2.0) has helped many Washington state homeowners with conforming mortgages (securitized by Fannie Mae or Freddie Mac prior to June 1, 2009) take advantage of historically low mortgage rates regardless of their home’s current equity (or lack thereof). You can learn more about the HARP 2.0 program by clicking here.

The recent updates to HARP 2.0 will allow more home owners to have access to this program by reducing documentation requirements for some borrowers. Here are some of the improvements:

  • Reduced documentation for income and assets. NOTE: Form 4506 and verification of employment will still be required. Lenders will not be required to verify large deposits.
  • Allowing borrowers with assets to not have to document income. This is available when a home owner has at least 12 months of their proposed new mortgage payment (PITI) in savings. The assets may come from checking or savings, stocks or vested retirement accounts.
  • Improvements to when a borrower is removed from the mortgage. Previously if a borrower was being removed with the HARP 2.0 refinance, guidelines required proof that the remaining borrower made the mortgage payments for the last year with their own separate funds (except in the case of death). Now with HARP 2.0, in the remaining borrower can qualify on their own (debt to income at 45% or lower and credit scores of 620 or higher) they may qualify for a HARP 2.0 refinance.

Remember, banks and lenders may layer their own underwriting guidelines to Fannie Mae and Freddie Mac’s HARP 2.0 program.

If you have been turned down for a HARP 2.0 refinance before, it may be worth checking with your local, licensed mortgage originator to see if you are now eligible. HARP 2.0 is available for owner occupied, vacation homes and investment properties.  I can help you if your home is located anywhere in Washington State – click here for your HARP 2.0 rate quote.

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HARP 2.0 Refi Volumes Dramatically Up while Major HARP Lender Holds Off on New Applications

August 23, 2012 by 1 Comment

In a report issued earlier this month by the Federal Housing Finance Agency, it was revealed that many home owners are taking advantage of the HARP 2.0 refinance program.  From the FHFA’s Refinance Report:

“In June, borrowers with loan to values greater than 105% accounted for 62% of HARP volume, up 32% in May ad 15% in 2011. In addition, 18 percent of underwater borrowers chose shorter-term 15 and 20 year mortgages, which build equity faster than traditional 30 year mortgages.”

It hasn’t always been a slam dunk for home owners to find lenders willing to do higher loan to value HARP 2.0. Some banks have been limiting who they will help with HARP refi’s and/or have additional underwriting overlays in addition to the Fannie Mae or Freddie Mac guidelines. This causes the entire process to bog down when only a few resources are available to the hoards of borrowers who need help.

Last month, I shared with you that one of our resources, EverBank, elected to stop offering HARP 2.0 refinances to mortgages securitized by Freddie Mac. Yesterday we learned that another major lender in the HARP 2.0 arena, CMG Mortgage, has elected to to stop accepting applications effective yesterday in an attempt to get a handle on the volumes of applications they already have in their pipeline.  From CMG’s memo yesterday:

“Like you, we knew this program would help millions of Americans that have struggled to stay in their home despite their property being substantially underwater…. What we didn’t know was that so few lenders would have stopped either partially or completely offering HARP 2.0. As a result, we have become inundated with business. …our turn times do not make us happy, you happy or your borrowers happy…we feel the need to temporarily stop taking HARP 2.0 loans to allow us to catch up…. Once turn times are back in line, we will resume taking submissions of HARP 2.0 loans as we have i the past.”

We are still accepting applications for HARP 2.0 mortgages for homes located in Washington state. We are brokering most loans that are over 105% loan to value which means they do take much longer to close. Most loan to values under 105% we are able to care for through our correspondent channels.

If you’re interested in refinancing your Washington home, I’m happy to help you. 

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