Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers

25 10 2011

While we don’t know the full details of the proposed program until November, I wanted to give you a heads up… if you’d like to take advantage of the HARP program, I’d be happy to check and see if Fannie or Freddie owns your mortgage. 

Washington, DC – The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac (the Enterprises), today announced a series of changes to the Home Affordable Refinance Program (HARP) in an effort to attract more eligible borrowers who can benefit from refinancing their home mortgage. The program enhancements were developed at FHFA’s direction with input from lenders, mortgage insurers and other industry participants.

In general, borrowers must meet the following criteria:

 The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.

 The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

 The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.

 The current loan-to-value (LTV) ratio must be greater than 80%.

 The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Also, new highlights include:

 * Eliminating certain risk-based fees for borrowers who refinance into shorter-term
mortgages and lowering fees for other borrowers;
* Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by
Fannie Mae and Freddie Mac;
* Waiving certain representations and warranties that lenders commit to in making loans
owned or guaranteed by Fannie Mae and Freddie Mac;
* Eliminating the need for a new property appraisal where there is a reliable AVM
(automated valuation model) estimate provided by the Enterprises; and
* Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the
Enterprises on or before May 31, 2009.

via : http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf

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