Blog with MAE Capital

HARP Home Affordable Refinance Program

October 25th, 2011 9:54 AM by Gregg Mower

This is another attempt by the Federal Government to help home owners who are "underwater" on their mortgage.  Meaning that you owe more than your home is worth.  The big "catch" or the condition of qualifying for such relief is that your current mortgage be held (the underlying security) be held by  Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).  The way you find this out is to go to this page for FNMA:

Or this page for FHLMC:

These look up pages will tell you if either of the agencies hold the security on your loan.  Your loan might be serviced (this means where you send your mortgage payment) by a bank or mortgage company.  In other words so it is clear you may make your mortgage payment to Wells Fargo Bank or Bank of America or any number of different lenders, the loan may still be securitized or owned by FNMA or FHLMC.  The only way you are going to know is to use the above look ups.

If your loan is not held by either FNMA or FHLMC you are out of luck on the HARP program.  However, if you have an FHA loan there has always been a provision for refinancing your loan if you are underwater and that is called a FHA Streamline Refinance where no appraisal is required.  You have to be current on your mortgage payment and have had only 1 late in the last 12 months (No lates are better  but 1 is the max in the last 12 months). 

If you have what in the industry we call a non-conforming loan or a loan that does not conform to FNMA and FHMLC guidelines such as a Jumbo loan these refinance options don't apply to you.  In order to get relief with these types of loans you should call the lender who you are making your payments to and see if they can do anything for you.  Don't forget with all these loans you signed a Promissory Note which is a legal document that says you promise to pay this loan back under the terms of which you took the loan out originally.  The lender does not have to do anything for you, so be nice to them and you might get something done.

In closing the author of this has been in the mortgage business for 28 years and understands the issues faced by Americans with their mortgages and the values of their homes.  This new program will not be in effect until December of 2011 and we will not know the full scope of the final rule until sometime in the middle of November so stay tuned for more updates.

Contact us for more information and help with qualifying for this program we can get your application now so when it come to fruition we will be first on the list to get it done.

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Posted by Gregg Mower on October 25th, 2011 9:54 AM

I appreciate your wealth of information on the H.A.R.P. and FHA Streamline. There is no incentive for the lending institutions to lend money to people who's property is underwater. Citibank, GMAC, B of A, Ally and Chase will give you a HARP refi. But the closing cost are high. My mortgage holder (GMAC) will refi my property at 4.6. Closing cost $ 3,600 - $ 5,400. Depending on the close date. We have high credit scores and were low risk. We decided to keep our 6.25% loan. Obama doesn't understand his program isn't working. Thanks.
Posted by Linda on February 28th, 2012 6:11 PM



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