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.