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HARP and FHA refinance updates

Posted: Thu Apr 05, 2012 7:20 am
by el_flasko
I have spoke to several MJC'ers in the last few months about potential changes to the refianance programs out there, so I wanted to post a quick update here to spread the comments are NOT to be construed as actual guidelines or hard fast rules/facts, this is simply my attempt to explain as clearly as I can general information about HARP and FHA changes we are expecting to come in the near future. Please call me, or your own loan specialist for details. :)

HARP - this is the conventional loan program where you can potentially refinance your home even IF you are over 80% of the value owed (an even be underwater), and IF it is backed by Fannie Mae or Freddie Mac currently. For some time we have been tolf that the "HARP 2.0" guidelines would be released AND accepted by lenders. We were told Jan 1, then March 1, and now we are being told April 23rd this month we should be a go.

To clarify, the guidelines are out there, but these programs are voluntary so each lender can adjust what they will/will not accept within the program. Typically one BIG lender will step up and start it rolling, then the rest of lenders jump in the pool as well. We are now hoping to release this program by 4/23/12!! If this finally goes thru, this will spark (in my opinion) an enormous refinance opportunity for those currently under water with Fannie/Freddie backed loans. You of course will have to apply and qualify for any/all loan programs.

I know many of you have spoke to me about this very program, so please stay tuned and I will update as best I can as news arises. Rest assurred, this will be good for many people regardless if you use me or look elsewhere for your loan.

FHA - they have announced as of early June, they will FINALLY roll out the new streamline refinance guidelines for current FHA backed loans. This will allow lenders to avoid tacking on the higher monthly and upfront mortgage insurance premiums to those with older FHA loans. This doesn't sound like much, but if you have had a FHA loan for a couple few years and looked into refinancing lately you will know the mortgage insurance premiums have been hiked by FHA twice now, and this has basically stalled the FHA streamline market all together. The reason - lowering your rate a full point or more is typically a no-brainer, but when the new insurance premiums were tacked on it basically eliminated the monthly savings (loan benefit) of refinancing all together. This is a generalization, but you get the point.

This will help FHA customers to take advantage of the lower rates and actually REALIZE monthly savings. All of this is if you qualify of course in all scenarios, but typically FHA streamlines require reduced documentation, and often times no appraisal is required.

Sorry this is so long, but there are a lot of good things coming down the road and I wanted to lay it out as best I could. I have worked with many MJC members over the years, and I just wanted to get the general info out there for all to see. I don't care (honestly) if you use me or not, but for those of you in a bind this info is good to have in general.

Have a good day all :thumbsup:

Re: HARP and FHA refinance updates

Posted: Sat Apr 07, 2012 8:17 pm
by evilelvis
I have a FHA loan through BoA. How can I find out if I can qualify for this as I am not sure if Fannie Mae or Freddie Mac backs it.

Re: HARP and FHA refinance updates

Posted: Sun Apr 08, 2012 6:00 pm
by el_flasko
evilelvis wrote:I have a FHA loan through BoA. How can I find out if I can qualify for this as I am not sure if Fannie Mae or Freddie Mac backs it.

Either I can check for you or you go to this website and check to see for yourself if you like :)

Go to tools then follow the link for Fannie Mae or Freddie Mac and enter the information as needed.

Give me a ring or drop me an email if I can help in anyway :)


HARP and FHA refinance updates

Posted: Sun Apr 08, 2012 6:33 pm
by evilelvis
Thanks I will check this out!

Re: HARP and FHA refinance updates

Posted: Tue Apr 24, 2012 7:15 am
by el_flasko we go (for now). Wells and Citi were the first to dip their toes in the water with us and here is how it will break down initially, and they (amongst other lenders) will continue to roll new programs out and "loosen the guideline belts" as they ease into this...

Wells Fargo - is now accepting current Wells Fargo serviced loand AND non-Wells Fargo serviced loans. For now, they are ONLY accepting loans backed by Fannie Mae (Freddie has not been released yet). Without boring you with the details, IF you have a loan currently servied by Wells Fargo and backed by Fannie Mae, it is time to take a look! They are allowing from 105% to 110% of value (depending on several factors including if you just have a 1st mortgage, or a 1st and a 2nd etc).

CITI - They are now under the new guidelines allowing up to 125% of property value for Fannie Mae and Freddie Mac backed loans, but (for now) only those currently backed by CITI currently.

It seems they are trickling these new guidelines out to avoid a run on their back offices and insanely long turn times (this is my guess). None of the investors have addressed loans that currently have monthly mortgage insurance built in, so for those of you that have it, stay tuned...nothing yet. We have been told we should have other lenders opening up the guidelines completely once Citi and Wells set the initial footing (if that makes sense).

Please note: it may be easier to respond to email questions for the next day or so as these new guidelines continue to roll out and change. If my return call times are a bit extended, please hang in there as each call takes a bit of time and I want to explain everything to everyone :thumbsup:

FHA - for those of you wanting a FHA update, we are still set for beginning of June for the refi changes!!

VA - still good to go now without appraisals on streamlines for qualified borrowers :)