HARP 2.0 updated thread
 

As my initial thread was deemed too old to add comments, I thought it may be appropriate to ressurect a new HARP 2.0 thread as there are many who have questions.

Back on March 19th, all new HARP 2.0 loans were able to be qualified with no limit on Loan To Value.

HARP 2.0 has really come a long way since the initial HARP guidelines. While there are still many lenders restricting guidelines with their own overlays, the automated systems from Fannie Mae (Desktop Underwriter) and Freddie Mac (Loan Prospector) have evolved and have made it easier to get these loans done; with a good number of cases receiving appraisal waivers too.

HARP is not just if you are Underwater. Regular debt to income ratio guidelines are also enhanced (going >45 dti) and in some cases pricing is better than conventional.

To qualify for a HARP loan your current loan must have been sold to Fannie Mae or Freddie Mac prior to June 1, 2009. As currently written, this program ends on December 31, 2013.

How do you know if they own your loan? To check, just follow these links to look it up:

"Does Fannie own my loan?" http://www.fanniemae.com/loanlookup/
"Does Freddie own my loan?" https://ww3.freddiemac.com/corporate/

As each lender has their own specific guidelines (overlays) utilizing an experienced and knowledgable mortgage broker would be beneficial as they have many wholesale conduits and can best direct your loan to the most suited lender.

If you do qualify for HARP most likely there are tangible benefits (as most loans prior to 6/2009 have higher interest rates) that should be taken advantage of.

-Adam
Old Hippy & Mortgage Pro

One important factor not previously discussed is the differences between a Fannie Mae HARP Loan (known as DU Refi Plus) and a Freddie HARP loan (known as Freddie Open Access).

There are many more lenders are set up with Fannie Mae to offer the DU Refi Pus loans than Freddie Open Access. But do not get fooled into going back to your existing lender if you have a Freddie loan; as there are Open Access lenders available if your current loan is owned by Freddie.

Also, I receive many questions as to whether the prior to June 1 date is going to change. No one really knows, but I do know that HARP 2.0, the way it is written, is set to expire on Dec 31, 2013. Nothing changes very fast when it comes to mortgage programs like this, but there is constant feedback being given to those who write the guidelines.

All questions are welcome and I hope these posts are helpful;
-Adam
Old Hippy & Mortgage Pro

What is the average turn around time for one of these? I am in the process with my existing lender and submitted the application back in late July. The contact I was working with said about 60 days from receiving the application.

I will post details of my HARP 2.0 refi later (I do not have them in front of me), but looking back I wish I would have worked with a broker to make sure I was getting the best overall deal.

The main reason(s) for considering HARP 2.0:

1. My wife quit her job (almost 50% of our monthly income)
2. My credit score is in the low 700s
3. We are still current on our mortgage payments with no late payments over 30 days

My main goal was to lower the monthly payment (via interest reduction) even if it meant resetting the loan back to 30 years. My rate is currently 5.875%, it is a Fannie Mae loan with CCO Mortgage and was originated in 2005 with no PMI.

I have some important news to share for those whom have been wanting to do a Fannie HARP Refinance but may not have previously qualified due to no documentable source of income.

Currently, for Refi Plus mortgage loans with payment changes (principal and interest) less than or equal to 20%, Fannie Mae requires verification that at least one of the borrowers has a source of income. In lieu of this verification, Fannie Mae will now allow verification of liquid financial reserves equal to at least 12 months of the new mortgage payment (PITIA) on the subject property. These reserves must be documented with at least one recent statement (monthly, quarterly, or annual) and are limited to the following types of liquid assets:
 checking or savings accounts, certificates of deposit, and money market funds;
 investments in stocks, bonds, mutual funds; and
 the amount vested in a retirement savings account.

Lenders are not required to investigate large deposits that appear on the statements. However, Fannie Mae policy requires that certain assets be “discounted” when used for reserves (i.e. retirement assets).

Fannie also is also making changes to minimize the amount of documentation of income and assets as well.

Overall these new guidelines are designed to help lenders more efficiently reach an even broader base of eligible borrowers.
Remember that each lender will impose their own 'overlays'. Just because one lender may not fully follow Fannie's guidelines doesn't mean there are lenders who do.

This is the latest from Fannie Mae and hopefully Freddie will follow suit, as well as HUD with their FHA Streamline.

-Adam
Old Hippy & Mortgage Pro

Hi, I'm a realtor I have a fannie mea loan acquired 11/2007 my loan is 164,000. and market value is 290,000. my interest rate is 6.0 and i'm 5yrs into a 30yr. My income is pretty much non existent al though I get 2,400. a month from S.O.
I have 20,000. in savings and 15,000 in stocks and 12,000. in IRA
I have good credit rating and about 3,000. in debt outside of mortgage.
Do I qualify for this?
and where do I find some one that knows about this ReFi plus?
Every mortgage broker or banker tells me there is nothing I can do because of lack of doc. income.

Your loan is HARP eligible and, as you noted, your income is not straight forward, which leads me to a few questions.

1. The $2400 from S.O. is for what? Rent? Child support? Other?
2. Your income pretty much non existent meaning what specifically? Do you file a Sched C and write everything off? (If so, keep in mind that any depreciation write off can be added back.)

Now, income aside, Fannie Mae has just amended guidelines for DU Refi Plus and there is a specific guidelines for borrowers like yourself who have no documented source of income, however, can prove excellent reserves. However, as this is truly a very new guideline, and I have yet to see any lender agree to follow it yet.

As far as the specific Fannie Mae guideline I am referring to, you can direct any lender to
Selling Guide Announcement SEL-2012-09.

In my opinion, you just need to give these newest guidelines a little more time to kick in, get adopted by a few lenders, so more will get on board.

I will definitely update the thread if I see any lenders adopt these new product parameters.

-Adam
Old Hippy & Mortgage Pro

When I checked with Fannie a few months ago, they did not acquire my loan so I wrote off HARP and forgot about it.

So then just now I tried the Freddy link and it turns out they did acquire my loan....

On June 11th, 2009.

So my question is do I even talk to any lenders about it at this time or just say screw it and wait...again...?

The date of prior to June 1, 2009 is still required and while there are indications of some further easing of some requirements to qualify the dates for when current loans were purchased by Fannie or Freddie has not changed.

Sorry I do not have any news that indicates any changes on this specific parameter at this time.
-Adam
Old Hippy & Mortgage Pro

Just closed last night, initial phone call was made July 23rd, 2012 so about 90 days from first phone call to close. I stayed with the same lender. My final rate was 4.0%, so 1.875% less than the original and I reset the loan from 23 years to 30. Overall I am satisfied with the outcome, I rolled the closing costs into the loan, I get to skip the November payment and they are issuing a check to me for $236 (they said cash back was limited to $250). I will save $213.82 per month, which was the main reason I did it (see my above post).

I used Adam (tiedyed1) for my harp freddie REFI. Closed a couple weeks ago. Went down to a 15 year 3.25% loan from a 30 year(24 remaining) 6.125% loan. My payment went up $40-45 but I am knocking $80K in interest and 9 years off my loan. Most importantly Adam has some very good rates, but he made the process of refinancing as easy as it could be when dealing with banks and underwriters etc. Adam met and exceeded my expectations. We mostly communicated through email and he was quick to respond with honest answers. My closing costs were slightly less than what they were when I purchased the home.

flee, sorry for the delayed thank you (for the kind words). Sandy did a real job on those of us in the Northeast.

There have not been many posted questions lately and I just wanted to share some information regarding appraisals and HARP refinances.

In most cases an appraisal is not required for a HARP Refinance.
Fannie Mae findings can provide a Property Inspection Waiver (PIW) and Freddie Mac findings may utilize their Home Valuation Estimate (HVE).

However, appraisal waiver is not a guideline covering all loans. Each loan has its specific characteristics and there are some cases where the findings require some form of an appraisal (i.e. exterior only, interior+exterior).

Plus, recently, in the Northeast areas that are deemed FEMA Disaster areas, whether or not an appraisal was warranted for Underwriting approval, lenders are requiring inspections to be done in order to confirm the property has not been negatively impacted by SuperStorm Sandy.

Each scenario is truly unique so please post your questions and I will try my best to answer them.

-Adam
Old Hippy & Mortgage Pro

I truly give thanks for a life that provides me to even have SlickDeals.

To all the SD Finance Forum, Happy Thanksgiving!
-Adam
Old Hippy & Mortgage Pro

Oh, this is all useful reading

HARP is a very popular refi product for those whose loans qualify.

Keep in mind that it is for both owner occupied and investment properties and is a great product, especially for those whose equity position has been lowered by declining housing values.

Lender 'overlays' still apply and not all will qualify; but, as written, the program will run through Dec 31, 2013.

-Adam
Old Hippy & Mortgage Pro

Just wanted to give this thread a bump as there is some chatter about new HARP parameters being addressed within Obama's State Of The Union Address tonight.

I am not looking to get political (so please keep political opinions to another thread) and trying to maintain focus on this thread being helpful to those who may benefit from a HARP Refinance; and will continue to update as any factual news becomes available.

Thanks; -Adam
Old Hippy & Mortgage Pro

Adam, Just want to say thanks for all the posts and also sent you a pm.

Looking to get 15 year refinance on Investment property through HARP but a little frustrating to find someone.

1) BofA. They just switched my servicing to Green Tree this month and only are doing HARP for current customers. Been with them 25 years and will leave ASAP.

2) Credit Union. 4 days and no reply for 3 days.

3) Wells Fargo. Not doing HARP currently due to 90+ day wait.

4) Local Bank 1. Not doing HARP

5) Local Bank 2. Not doing HARP

My mortgage has been with BofA for the past couple years (after they acquired it from Countrywide). A couple of days ago I received a letter stating that they are transferring the servicing of my loan to Green Tree and I will be making my payments to them as of April 1st. I had not heard of Green Tree and after doing some Googling I have found nothing but horror story after horror story about their abysmal customer service and their habit of harassing their customer if payment isn't received exactly on the 1st of the month, etc. Basically they treat you as if they are a collection agency hounding a deadbeat.

Anyway I too am now considering the HARP 2 route. My current loan was originated in 2002 and is owned by Fannie Mae so I think I quality. My home is half of a duplex and worth about a third of what it was before the housing bubble burst. Even though I only owe about $64,000, comparable units on my street are selling for a mere $45,000 to $50,000 or less.

My current interest rate is 7.875% and I have 18 years remaining. I'd like to find a HARP lender that would do maybe a 3%-5% 15 or 20 year loan with no closing costs/fees, no appraisal and no income verification requirements (I am unemployed, taking care of my father who is a disabled vet). DO I have any chance at all or am I basically screwed and stuck with my underwater mortgage and Green Tree?

Please see my post above. Would love your input and possibly your services..
Thanks!

Hello? Anyone still alive on this thread?

I'm not in the broker field so I don't have the answers. I would think that income verfication would be a major issue. I also saw the Green Tree reviews so I am reluctant to have anything to do with them. Unfortunately the banks and lenders can and may transfer the service to your loan at any time so nothing is guaranteed. I also read that Green Tree charges $12 for online payments, Wow, you would think online payment service would save them money

Update on my search for a loan
LtoV 90%, Credit rating 800 +, 15 year loan, Investment (rental property) in California.

I checked with two brokers for Good Faith Estimates (GFE). One I found from Zillow and the other was a reference from a local credit union. It was a little confusing just comparing APR since APR can be calculated differently depending on broker. Also it is best to ask for a GFE on the same day from all your brokers/bank since interest rates can change slightly daily. It was better for me to not add to my mortgage so I told them I will pay all fees.

Broker one 3.75% with $2500 out of pocket
Broker two is 3.5% with $3700 out of pocket. ( going with this one since break even point is better )
Checked with major bank if I paid down the loan to 75% LtoV and they gave me a 3.5% rate quote. I was thinking I should be able to get the going rate on 15 year loans of 2.6% but I guess because it is a rental that puts you in a different category.

Well according to my research of the official HARP 2 guidelines, as long as the borrower has a good payment history (no late payments etc) income verification isn't supposed to be necessary unless the new loan payment will be 20% higher than the current one. Of course many lender ignore the HARP guidelines and impose their own restrictions. But I figure there has to be a lender out there that does it by the book.


I'm pretty sure it does. They take over my mortgage on Monday :O

It has been a couple of months and I want to update this thread to alert borrower's that HARP has been extended through December 31, 2015 (two more years).

Pricing is really as good as it has been and there are still plenty of borrower's with Fannie Mae and Freddie Mac loans that would greatly benefit from a HARP Refinance.

While the program has been extended two more years, there is unfortunately no other changes to guidelines at this time; however, I will continue to update as anything new is announced..

-Adam
Old Hippy & Mortgage Pro