HARP 2 Underwater Refi Plan: ALMOST READY

Lenders across the U.S. were waiting for today’s release of more details on HARP 2, the government’s revised Home Affordable Refinance Program for underwater homeowners. Here’s what consumers need to know as of this afternoon:

-Federal Housing Finance Agency acting director Edward DeMarco’s Senate testimony today covered broad housing issues and had a small section on HARP 2 with no new information following FHFA’s October 24 release.

-HARP guidance for lenders were released by Fannie and Freddie this afternoon. Lenders must now analyze their rate pricing and securitization risk, and decide on their own HARP 2 guidelines accordingly.

-Put another way, lenders don’t take Fannie/Freddie guidance verbatim. Most lenders interpret and add their own rate pricing and/or loan qualifying parameters on top of Fannie/Freddie guidelines before offering products to consumers. That will take another 1-3 weeks depending on lender.

-Meantime, if you’re an underwater homeowner waiting to lock into one of these HARP refi loans, SEE IF YOU QUALIFY HERE then contact your lender to provide your full profile and documentation so you can be ready when your lender rolls out the program and can officially quote rates.

As I get more lender feedback on Fannie and Freddie guides released today, I’ll comment further.

Robpieklo says:

November 15, 2011 at 11:34 pm

Not Sure of investor implementation since the MBS and Ecommit dates are pretty far out.

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1. The Basis Point says:
  
  November 15, 2011 at 11:43 pm
  
  agreed. that was a big question hard to answer as of this afternoon. but certain firms are going to hold on balance sheet so they can implement quicker, no?
  
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Ted_rood says:

November 17, 2011 at 3:48 am

Sure be nice to start writing loans with the new lower LLPA’s…..something tells me it will be a few weeks before rate sheets reflect the changes, and I would bet dollars versus doughnuts that loans in progress won’t get the benefit of new adjustments regardless of Fan/Fred’s eligibility dates.

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1. The Basis Point says:
  
  November 17, 2011 at 4:02 am
  
  Agree.
  
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Reuben Ahmed says:

November 17, 2011 at 10:50 am

I have LPMI on my current mortgage, and my mortgage lender told me my new BPMI after refnancing with HARP 2 will be very high because my LTV is over 100%. $260 a month.

I fucking hate PMI. Trust me that I’m going to pay my mortgage in 30 years, I’d pay it in 5 if there was no interest! What basis do you have to add PMI? My credit score is through the roof.

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