The real HARP 2.0 is finally here!

Another Update:

HARP 2.0 is not a mandatory program. As per Freddie Mac, "HARP is not mandatory. Implementation schedules have varied among the lenders, investors, MI firms and warehouse banks". Only 50% of the lending industry is participating in the program.

Also, many have been under the impression that HARP 2.0 does not require an appraisal, however, that is not always the case. Appraisal requirements are dictated by the individual loans' automated Underwriting approval. (Fannie Mae's Desktop Underwriter (DU) or Freddie Mac's Loan Prospector (LP))

We have found that while the appraisal waiver is not uncommon, many loans >125% are requiring appraisals as well. The Waiver is also more likely to be granted if the value is close to the internal databse estimates the automated system utilizes. Plus property type also makes a difference: if your property is a Condo it appears more likely to require an appraisal.

In some cases where an appraisal is required this creates a problem as many lenders will not do
>125% unless there is an appraisal waiver.

Higher credit scores are also extremely critical to the lender's higher LTV guidelines. Some lenders will only do 150% or unlimited LTV with very high credit scores.

Confusing? Absolutely.
Frustrating? Very.

Every loan is truly unique and even though there are HARP 2.0 general guidelines there is SO much more to each individuals guidelines as each lender is also unique in how they are handling HARP 2.0.

I remain committed to stating that a good broker provides the expertise needed to provide the borrower the smoothest financing experience; and this especially is pertinent with HARP 2.0 where the broker has many lenders available and it is important to find the best lender for your scenario.

-Adam