HARP - Home Affordable Refi - The Mortgage Porter

HARP 2.0, Greedy Big Banks and….We NOW offer Higher Loan to Values!

April 27, 2012 by Rhonda Porter Leave a Comment

It's been a bit disappointing that HARP 2 has not been made as available to consumers as it should be. First, underwater homeowners had to wait a couple months for the program to become available and now, those who have the more challenging HARP refi's (loan to values over 105% or with private mortgage insurance) are finding that their options are even more limited. In addition, many banks are "cherry picking" which of their consumers they'll help and who they'll pawn off to large internet mortgage companies.

NOTE: Mortgage Master Service Corporation has recently added new lenders that offer loan to values over 105%!! For your HARP 2.0 rate quote on your home located in Washington State, please click here.

According to this article in Housing Wire, banks are making huge profits by not allowing for more competition, enabling them to charge hire rates to consumers.

HARP demand is rising at the banks, and they are generating new profits from it. Revenue at the Wells Fargo ($33.84 0%) mortgage department jumped by $1.6 billion in the first quarter as originations spiked. The bank said 15% of the originations completed in the first three months of the year were refinances under the new HARP.

Anthony Sanders, a professor of finance at George Mason University, told the panel Bank of America ($8.27 0%) received more than 30,000 HARP applications since mid-January.

A Senate subcommittee is currently reviewing how to make HARP 2.0 more readily available to consumers who qualify. In order to qualify for the Home Affordable Refinance Program, the mortgage needs to have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. Other conditions apply as well.

Expanded LTVs are available – just not as available as they should be if we really want our housing to have a chance to recover.

Mortgage Master Service Corporation has recently added new lenders who are offering loan to values over 105%. If I can help you with your HARP 2 refinance on your home located in Washington, click here.

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/

Filed Under: HARP - Home Affordable Refi, Rant, Refinance

What are your odds of getting a HARP 2.0 refinance?

April 4, 2012 by Rhonda Porter 1 Comment

UPDATE SEPTEMBER 4, 2012: Odds are back to being a little tricky if you have a Freddie Mac securitized mortgage….bummer! Most of my lenders are limiting us to 105% LTV for Freddie Mac and unlimited LTVs for Fannie Mae.

UPDATE MAY 12, 2012: ODDS ARE GREATLY IMPROVED! We are now working with several lenders who are allowing expanded (unlimited) loan to values, including mortgages with existing private mortgage insurance and lpmi (as long as the mortgage insurance can be transferred). For a quote on a HARP 2.0 refi for your home located in Washington, please contact me.

Many home owners who have been patiently waiting for the expanded guidelines offered with HARP 2 to become available have found frustration. I’m being told that we are going to have the ability to originate HARP mortgages for my clients beyond 105% loan to value “soon” but as of the publishing of this post, I’m still limited to 105% LTV based on Fannie or Freddie’s estimated value of your home.

UPDATE 4/19/2012: Mortgage Master Service Corporation is adding several lenders who are allowing us to do unlimited loan to values! Stay tuned – I’ll have an exciting announcement soon!

UPDATE 5/12/2012: WE’RE COOKING WITH GAS! WE NOW HAVE LENDERS WHO ALLOW EXPANDED LTVS WITH APPRAISAL WAIVERS FOR HARP 2.0.

Click here for your rate quote for your home located anywhere in Washington.

HARP 2 is the Home Affordable Refinance Program which is available to home owners who have their mortgage *securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. *NOTE: this is different than who you make your mortgage payment to (your mortgage servicer).

This program is intended to be a giant band-aid with our housing by allowing qualifed home owners to refinance their underwater mortgages, reducing their mortgage payment and/or term and hopefully stimulating the economy with the extra cash flow. Many are supposed to qualify without having an appraisal – it’s intended to be a streamlined process. It is streamlined and available…for some. For many it may feel like throwing spaghetti on the wall to see what sticks.

What are your odds of obtaining a HARP 2 refinance? It depends on what your scenario looks like. I’ve successfully closed many HARP 2 refinances without (and with) appraisals for both Freddie Mac and Fannie Mae securitized loans. Here’s what I can tell you now (remember, this is my opinion and subject to change…hopefully soon). This is not intended to discourage you from trying to obtain your HARP 2 refinance.

Your odds are strongly in your favor if your loan to value on your first mortgage is 105% or lower and if you do not have any private mortgage insurance. Zillow has seemed to be fairly accurate for estimating value. However the ultimate say on if the value is acceptable to create an “appraisal waiver” is Fannie Mae and Freddie Mac.

Your odds improve more if your mortgage is securitized by Fannie. Freddie seems to be a bit pickier with approvals and sensitve towards new debts or debt to income ratios.

Second mortgages or HELOCs have not been a huge issue [knock on wood]. Most second lien holders have been cooperative and agreeing to subordinate their lien position – even without an appraisal.

Private mortgage insurance is still not where it needs to be with the HARP program. If you have any type of private mortgage insurance, this is an additonal “layer” to work with for your loan approval. The pmi company needs to agree to have the insurance transferred to the new loan and the new lender needs to accept the new pmi. With pmi, your coverage amount will stay the same AND private mortgage insurance companies treat the transferred coverage as a “new loan” (you may be stuck with that pmi for a while on a new HARP loan). Your odds are better with pmi if your loan to value is 95% or lower.

UPDATE 5/12/2012: HARP 2.0 mortgages with private mortgage insurance are not as much of an issue as long as the existing private mortgage insurance can be transferred or if the lpmi can be converted to borrower paid mortgage insurance. Most private mortgage insurance companies are agreeable and we work with lenders who are accepting transferred mortgage insurance.

Odds are worse if your the company who holds your pmi is United Guarantee. UGIC is not cooperating as much as the other pmi companies. UGIC is participating in HARP, however they are not waiving the reps and warrants on the original file. Therefore they request and require the original package from the current mortgage servicer and it takes a lot longer than the other MI companies.

Current odds are [NOT] lower if you have LPMI (lender paid mortgage insurance). Your best bet may be to try your existing mortgage servicer to see if they can help you with your HARP 2 refi. It’s my understanding, some mortgage servicers are refusing to help their very own clients with this program. Depending on the type of lender paid mortgage insurance (how the premium was structured) it may be fairly simple to help you with HARP 2.0. Just like regular pmi, as long as the private mortgage insurance company allows it to be transferred and be “borrower paid” (some lpmi loans can be coverted to bpmi – borrower paid), we have lenders who will accept the pmi. YOU DO NOT HAVE TO GO BACK TO YOUR BANK OR MORTGAGE SERVICER WITH AN LPMI HARP 2.0 REFINANCE.

Again, I looking forward to sharing with you that I have unlimited LTVs and can help any Washington borrower who has pmi or lpmi but it’s just not the case “right now”. We are working on bringing on more lenders who may allow expanded guidelines that other banks seem to be restricting. Currently, I can help most borrowers who need a HARP 2 refi as long as the loan to value doesn’t exceed 105% per Fannie Mae or Freddie Mac’s estimated value of your Washington home. UPDATE 5/12/2012: With the lenders we now work with, we have no loan to value restrictions for Fannie or Freddie and pmi or lpmi is probably not an issue.

It’s very frustrating to see the overlays banks and mortgage servicers have put on the HARP 2. Banks are limiting the availability of a program that is designed to help stabilize housing and the economy. This needs to change. HARP needs to be widely available to all home owners who qualify.

I’m happy to review your HARP 2 scenario for your home located any where in Washington. I have successfully helped many home owners refinance with the Home Affordable Refinance Program, including investment properties and second homes.

If you would like me to provide a rate quote for your HARP 2 refinance, click here.

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 orhttp://www.fanniemae.com/loanlookup/

Filed Under: HARP - Home Affordable Refi, Refinance Tagged With: fannie mae, freddie mac, harp 2.0, refi

Why May 31, 2009 is the cut-off date for Home Affordable Refi Program (HARP 2)s

March 23, 2012 by Rhonda Porter 51 Comments

I'm on a confererence call with Fannie Mae regarding the updates made to HARP 2. Someone has asked about how the date was selected for the cut-off of when when a mortgage is eligible for HARP 2. The answer from a gentleman representing Fannie Mae said (paraphrased – this is a conference call):

Because anyone who bought a home or obtained a mortgage June 1, 2009 or later, knew the they type of housing marketing were getting into.

The Fannie Mae rep insinuates that those who financed prior to June 1, 2009 may have not been aware of the dramatically changing climate in the housing industry.

By the way, the date of May 31, 2009 is not the closing date – it is the date Fannie Mae securitized the loan which may be weeks after the closing date. I have had clients who have missed qualifying for a HARP refi because Fannie Mae securitzed their loan ON June 1, 2009, disqualifying them by one day!

I was surprised by the Fannie Mae rep's response. I assumed there was a more scientific reason for the date of loans securitized prior to June 1, 2009 instead of "these borrowers knew better".

In my opinion, the date should be removed. Why punish borrowers who happened to refinance or buy after that time period. If Fannie Mae's argument is that these borrowers knew better, how could they continue to have mortgage programs available during that time? I feel that if borrowers are qualifed and can benefit from a HARP refi, they should be allowed to have access to this program to help their personal finances and therefore, the economy to improve.

Other factors Fannie Mae is stressing is that loans are still underwritten based on risk – especially borrowers in a negative equity position. It's not guaranteed that HARP refi's will receive an appraisal waiver and not all scenarios will receive an approval for a HARP refinance. I've been contacted by Washington area home owners who lack steady income or have blemished credit assuming they will qualify – they may not. We won't know until we submit your loan scenario to Fannie Mae's automated underwriting system DU Plus and have a response before we can determine IF someone qualifies for HARP and what documentation will be required.

If you are interested in a Home Affordable Refi (HARP 2) for your home located anywhere in Washington, please click here.

Filed Under: HARP - Home Affordable Refi, Opinion

HARP 2.0 Update

March 20, 2012 by Rhonda Porter Leave a Comment

Last weekend, Fannie Mae and Freddie Mac updated their automated underwriting systems (AUS) respectively known as DU and LP to allow expanded loan to values and other improvements to their guidelines. Many Washington home owners have been anxiously waiting (along with mortgage originators, like yours truly) for the expanded guidelines to be available.

It appears that HARP 2.0 has hiccups. Expanded guidelines are not being fully released to mortgage originators. Banks continue to have their overlays for Fannie Mae DU Plus and Freddie Mac Relief Open Assess HARP refinances, restricting what other lenders can do to help home owners. This is especially frustrating when banks/lenders are reportedly outsourcing many of their clients to large internet lenders with mostly inexperienced mortgage originators. Why these large banks would treat some of their clients as a "cold lead" instead of allowing consumers to have access to all lenders leaves me scratching my head.

I am constantly checking with the lenders I work with to see what's new with HARP guidelines. If you're reading this post, keep in mind that mortgage underwriting guidelines change constantly – what is published here, depending on when you read it, may be outdated. To stay updated, please subscribe to my blog (upper right corner). I'm also continuing to update my HARP 2.0 guide (button to the left).

Here's what I know, effective as of today, March 20, 2012 as of 8:30 am:

HARP is allowing for more waived appraisals on both Fannie and Freddie programs.
Waived appraisals may be available to 1-unit primary residence, investment property or second homes. It's not available to 2-4 unit properties. NOTE: not every home owner will qualify to have their appraisal waived.
Currently, the banks I work with are limiting the LTV to 105% for the first mortgage. There are no LTV limits with second mortgages/HELOCs, however the second lien holder needs to agree to be subordinated or be paid off – it cannot be included in the new HARP refi.
Private mortgage insurance: bank overlays (restrictions) are allowing us to go up to 95% LTV with a few allowing up to 105% LTV.
Some private mortgage insurance companies are more agreeable than others with HARP refi's. If your existing pmi is with UGIC, your HARP refi may take months.

I'm hopeful that banks will pick up the pace and update their overlays so that HARP is more widely available to home owners while mortgage rates are still low. I am told by the banks we work with that updated guidelines are coming soon.

I will continue to keep you posted!

If you would like me to provide you with a HARP 2.0 refi quote for your home located in Washington, click here.

2:30 pm UPDATE: I'm already hearing that some of the banks we work with will begin releasing HARP to us possibly later this week. Stay tuned!

Filed Under: HARP - Home Affordable Refi

HARPy St Patty’s Day

March 17, 2012 by Rhonda Porter Leave a Comment

I’ve been checking Fannie Mae’s website for the much anticipated release of the expanded HARP guidelines (often referred to as HARP 2) which is scheduled to take place this weekend.

Click here for your HARP 2 rate quote for your home located anywhere in Washington.

Once the guidelines are released, I will review them and plan on posting them here on my blog to share with Washington homeowners hoping to refinance and my readers. Many home owners have put their HARP refi’s “on hold” waiting for the expanded guidelines which will allow more home owners who have lost home equity to refinance their conventional mortgages (if securitized by Fannie or Freddie prior to June 1, 2009).

We don’t know what the bank or lender guidelines (underwriting over-lays) will be. Some major banks have already pawned off some of their clients to large internet lenders who tend to have very inexperienced mortgage originators.

We do know there is significant pent-up demand for HARP 2’s expanded guidelines because of the delay in releasing this until this weekend. Home owners planning on refinancing should be well prepared and patient. The release of HARP 2 this weekend combined with the increase in FHA mortgage insurance premiums taking place on April 9, 2012 will cause many Washington home owners with both conventional and FHA underlying mortgages to want to refinance.

I will keep you posted as soon as I have any information.

Happy St. Patty’s Day

Filed Under: HARP - Home Affordable Refi, Refinance

Big Banks and Lenders preparing for HARP 2

March 3, 2012 by Rhonda Porter Leave a Comment

Yesterday I read that a huge internet lender is hiring thousands of loan originators to prepare for the volumes of business they're anticipating in two weeks once expanded guidelines of the Home Affordable Refi Program (aka HARP 2) are released by Fannie and Freddie over St. Patty's weekend.

I'm also hearing that some of the big banks are planning on using these internet companies to handle their volumes of mortgages they currently service.

You do not have to return to who you make your mortgage payment to for your HARP 2 refinance. If your home is located in Renton, Woodinville, Seattle, Samammish or anywhere in Washington state, I can probably help you with your HARP refinance.

Click here for your HARP 2 refinance quote for your home (primary residence, investment or vacation property) located in Washington.

Mortgage rates and closing cost are not the only things you should be considering when you select your lender for your HARP refinance. I highly recommend that you research your mortgage originator. Thanks to the NMLS, you can quickly enter your mortgage originators name, company name or license number and get a snapshot of their employment history. Many of the LO's being hired by the online mortgage companies are inexperienced and may have closed few (if any) mortgage transactions before. They just know how to pass the LO exam to be licensed and how to fill in the blanks on a loan application. "Filling in the blanks" is vastly different than completing a loan application and knowing which questions to ask from your client in order to assure a smooth closing.

Was your mortgage originator flipping burgers last month or closing loans? Click here to learn more about your mortgage originator: NMLS Consumer Access. In addition to verifying your mortgage originator on NMLS, you can also try "googling" their name to learn more about them. A slightly lower rate quote (or any lower rate quote) doesn't mean anything if that mortgage originator is not capable of closing your loan.

Regardless of where home owners go for their refinance, they'll need to be a little more patient. It's my understanding that some banks are informing their clients they are taking up to 90 days to close refinances.

We are expecting increased volumes at Mortgage Master Service Corporation too. Every mortgage company and bank should be. Our office is family owned and operated with our main office located in Kent, Washington. A majority (I'm guessing 90% or more) of our transactions are processed and underwritten at our main office. We also prepare your loan documents and fund your loan from our credit lines. Many of large banks or lenders don't have local processing or underwriting; they're often located outside of Washington. I have been working with my team at Mortgage Master Service Corporation for just shy of 12 years.

I would love to be your mortgage originator for your refinance (or purchase!) for home located in Washington.

Filed Under: HARP - Home Affordable Refi

HARP 2 Expanded Guidelines Available Next Month

February 17, 2012 by Rhonda Porter 1 Comment

During the weekend of March 17, 2012, possibly while you're enjoying an Irish HARP's at The Celtic Swell off the shores of West Seattle, Fannie Mae and Freddie Mac will be releasing the next set of expanded guidelines for the Home Affordable Refinance (coined HARP 2 or 2.0).

Many Washington area home owners with conventional mortgages closed prior to June 1, 2009 are eagerly looking forward to this St. Patty's Day so they can take advantage of the current low mortgage rates. If you've been turned down for a HARP refinance before, you should consider trying again with this expansion.

HARP enhancements on the March 17 release include:

No maximum LTV (loan to value) ratio for fixed rate mortgages;
105% maximum LTV for adjustable rate mortgage;
More properties will qualify to have the appraisal waived, including primary residences, second homes and investment properties.

Borrowers still need to qualify with income, employment, credit and assets. If a borrower is relying on income from a second job to qualify, there cannot be any gaps of employment for that job in the last 12 months. Fannie Mae DU Plus will also require 2 months of reserves for second homes and six months reserves to be verified for investment properties.

Some Washington home owners are not waiting until next month to refinance. If Fannie or Freddie are accepting the home's current value (generally it's underwater no more than 105% LTV) they may receive an appraisal waiver. You may not have to wait either! If we do not receive an response from Fannie or Freddie with an appraisal waiver, we can work on improving your credit or savings while we wait for the next expanded guidelines next month.

If your home is located in Washington state, I'm happy to review your scenario. For your HARP rate quote, click here.

For more information about HARP 2.0, please click here.

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 orhttp://www.fanniemae.com/loanlookup/

Filed Under: HARP - Home Affordable Refi, Refinance

Fannie Mae’s Home Affordable Refi HARP 2.0 (DU Plus) Update on LTVs and Appraisal Waivers

January 4, 2012 by Rhonda Porter Leave a Comment

You won't need the luck of the Irish to refinance you underwater home in the Seattle (also known as the Emerald City) or anywhere in Washington after Saint Patrick's Day. The weekend of March 17, 2012 is when the next phase of HARP 2.0 will be officially released. And you may not need to wait until March for your HARP refinance; many are taking advantage of lower rates and refinancing now!

Per Fannie Mae's Release Notes issued yesterday for DU Refi Plus – HARP 2.0, we'll have the following enhancements:

No maximum loan to value ratio for fixed rate mortgages with terms up to 30 years
105% maximum loan to value ratio for fixed rate mortgages with terms greater than 30 years and for adjustable rate mortgages

Even though Fannie Mae states the loan to value caps will be removed, it's also noted the appraisal waiver will be "updated to further increase the number of loan casefiles that are considered for the…waiver".

This update states the following transactions will be "eligible for consideration" to have the appraisal waived:

one-to-four unit properties;
primary residence (owner occupied), second or vacation homes and investment properties;
loans with a loan to value or combined loan to value (second mortgages) over 125%;
attached (condos, townhomes) and detached properties.

You may not have to wait until March to refinance depending on how underwater your home is. I'm currently working with clients from Des Moines, Kent and Seattle who had their appraisal waived and will be closing well BEFORE March as long as Fannie Mae estimates your loan to value is 105% or lower. It's unknown what value Fannie Mae's system will accept for your home until it is submitted to their automated underwriting program (DU).

Another reason NOT to wait until March to start your HARP application is to make sure your credit and debt-to-income ratios are in line. Beginning your application today will allow us to review your current credit scenario to help assure you're in the best position to proceed with your refi, even if you have to wait until March for loan-to-value reasons.

From reading today's release notes, it looks like not all loans will qualify to have their appraisals waived…however you won't know unless you try! It's also important to keep in mind that that banks and lenders may have their own underwriting overlays in addition to what Fannie Mae or Freddie Mac offers with this (or any) program.

I am encouraging Washington home owners to contact me for a rate quote. If it looks like we should wait until closer to March to proceed, we can keep your information and try again at that time.

If you have any questions about HARP 2.0 or any mortgage for homes located anywhere in Washington, please contact me! If you want to stay informed, subscribe to my blog!

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 orhttp://www.fanniemae.com/loanlookup/

Filed Under: HARP - Home Affordable Refi, Refinance