New HARP Program for Your Mortgage
Published:
Recently, President Obama has been talking about another mortgage help program for struggling homeowners.
Now he has released his proposal, which is an expansion on the already existing HARP (Home Affordable Refinance Program).
Outlined below are the main points of the new HARP plan (based on The White House’s Fact Sheet).
Broad-Based Refinancing Plan
• Provides non-GSE borrowers access to simple, low-cost refinancing – You must be current on your mortgage and meet a minimum credit score – Your loan must be no larger than the current FHA conforming loan limits in your area – The loan you are refinancing is for a single-family, owner-occupied principal residence
• This plan will be paid for by a portion of a proposed fee on large financial institutions
• Streamlined refinancing for all GSE borrowers – Eliminates appraisal costs for all borrowers – Increases competition so borrowers get the best possible deal – Extends streamlined refinancing for all GSE borrowers
• Gives borrowers the chance to rebuild equity in their homes through refinancing
• Designed to provide streamlined refinancing for rural America
• Streamlined refinancing for FHA borrowers
Homeowner Bill of Rights
• Simple, easy to understand mortgage forms
• No hidden fees and penalties
• No conflicts of interest
• Assistance for “at-risk” homeowners
• Safeguards against inappropriate foreclosure
Pilot Sale of Foreclosed Properties
• Announcement of the initial pilot sale to transition Real Estate Owned (REO) property into rental housing to stabilize neighborhoods and improve housing prices
A Year of Forbearance for the Unemployed
• 12-month forbearance for mortgages owned by the GSE’s (Fannie Mae and Freddie Mac)
• Move by major servicers to use 12-month forbearance as a default approach, becoming the new industry norm
Investigations into Mortgage Servicing Abuses
• The Department of Justice, the Department of Housing and Urban Development, the Securities and Exchange Commission, and state Attorneys General have formed a “Residential Mortgage-Backed Securities Working Group” under President Obama’s Financial Fraud Enforcement Task Force
Project Rebuild
• Putting people back to work rehabilitating homes, businesses and communities
HAMP (Home Affordable Mortgage Program)
•Expanding HAMP eligibility to reduce additional foreclosures and help stabilize neighborhoods For more information about the new HARP program, please see the following articles:
• www.bizjournals.com/phoenix/blog/business/2012/02/obama-announces-new-harp-plans.html
• www.mnn.com/money/personal-finance/blogs/obama-announces-new-plan-to-combat-housing-crisis
• www.huliq.com/4745/obama-unveils-new-federal-proposal-help-bolster-housing-market
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