January 12th, 2012 12:06 PM by BILL WILBANKS
We're waiting like everyone else for the upcoming HARP II program availability. But we're building a call back list of interested parties once it's rolled out. What is HARP II you might ask? It's the latest version of the popular HARP program that has been authorized and then extended by congress the last couple years to assist high loan-to-value (LTV) mortgage borrowers do a rate and term only refinance that have been blocked by standard conventional loan guidelines. The caps will be off the LTV. Of course Fannie or Freddie must own your loan* and it must have been on their books no later than May 31, 2009. The latest version is supposed to open up that capability even more for those that have experienced the drastic value decline in recent years that kept many from getting a lower rate in this market due to excessively high LTV's. For more information contact us today.
The problem since the end of the year has been that though the new version has been authorized since the first of the year Fannie Mae (FNMA) will not update Desktop Underwriter (DU) to implement the enhancements until on or after the weekend of March 17th, 2012. It seems the interpretation of the guidelines are changing daily at the moment. Any lender that might book a loan under the perceived guidelines must underwrite it manually and hope it passes DU so they can sell it through later. Most lenders are biding their time until DU is available rather than risk it. What's the best thing to do if you think you are a candidate? Get on our call back list. When we have the full details we'll give them to you to hopefully get you started. Freddie Mac has a few program specific details to ask about. Additional guideline requirements will apply and will be available as known.
* To find out if Fannie Mae or Freddie Mac owns your loan go to our website and click the left bar under HARP at www.OrlandoMortgageMasters.com, input your address and follow the instructions at both Fannie and Freddie to see. If neither comes up then double check your address input. Still not showing up, call your lender and ask who owns it just in case. It may be owned by someone else and therefore not eligible for the program.