Extended HARP Program

On Monday, Oct. 24, the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac announced several enhancements to the Home Affordable Refinance Program (HARP) to attract more eligible borrowers who may benefit from refinancing their mortgage.

We are currently assessing the announcement and impacts. The industry expects more operational details for HARP II to be published by the FHFA, Fannie Mae and Freddie Mac by Nov. 15, 2011. More information will be provided as it is received. Once this information is out, its expected that the program will be ready for implementation by the first of the new year.

FHFA announced the following enhancements expected in HARP II:
· Removing the current 125 percent loan-to-value ceiling on fixed rate refinanced mortgages.

· Waiving risk-based fees on borrowers who take shorter term mortgages and reducing those fees for others.

· Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Fannie Mae and Freddie Mac

· Extending availability of the program through the end of 2013.

Watch for additional information in the future about dates, delivery details and specific changes. Until official notice of the effective date for the HARP enhancements, We will continue to follow the existing polices and processes for Freddie Mac Relief Refinance MortgageSM and Fannie Mae DU Refi PlusTM.

These enhancements are not available for borrowers that currently have a VA or FHA loan or any other loan that Fannie or Freddie do not currently service.

This may help a few more borrowers in the fact that the LTV limitation will be removed. Borrowers will still need to be current in their mortgages and have jobs to qualify for the refinance.

Watch for more details as they are released!
Call me with any questions. Karen 503 385-4050 or email at karen@landmarkprofessional.net.

USDA Loans – Still Funding!

IMPORTANT NOTICE :
We are still closing and funding the USDA RURAL HOUSING GUARANTEED LOAN PROGRAM! 100% Financing in Rural Areas

Last month the United States Department of Agriculture Rural Development Administration issued a Single Family Housing Guaranteed Loan Program Fiscal Year 2012 Commitment Notice.

Funding for the Single Family Housing Guaranteed Loan Program will not be available for a short period of time at the beginning of Fiscal Year 2012, which started October 1, 2011. During this temporary lapse of funding, Rural Development has been issuing Conditional Commitments “subject to the availablity of commtment authority” for purchase and refinance transactions.

Some lenders are currently not closing loans with a conditional commitment issued by Rural Development if the commitment is subject to the availability of commitment authority.

Landmark Professional will close and fund a USDA loan once the loan is cleared to close if the conditional commitment is subject to the availability of commitment authority subject to all other closing requirements.

As a reminder, the announcement also included the FY 2012 fee structure which will be as follows for all loans that receive a conditional commitment from Rural Development on or after October 1, 2011:

2 percent up-front fee for purchase transactions;
1 percent up-front fee for refinance transactions; and
0.3 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.
Please contact me if you have any questions in regard to this notice.
Karen Cox 503 385-4050 or at karen@landmarkprofessional.net