Earlier this week, President Obama met with homeowners in Las Vegas and announced new HARP changes that will help “underwater” borrowers refinance their mortgages at the more competitive rates that are available today.
The FHFA (Federal Housing Finance Authority) announced these changes as well and have also provided a list of FAQ’s at the end of their press release to help answer common questions you may have regarding the changes.
New HARP Program Enhancements:
- Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
- Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
- Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;
- Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and
- Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.
Not Sure If You Have a Fannie Mae or Freddie Mac Eligible Loan?
Fortunately there are some simple to use resources if you are not sure what type of loan you have. To check to see if you have a Freddie Mac loan, click here. To check to see if you have a Fannie Mae loan, click here.