Comments on: FHFA Gives the Green Light for 125% LTVs on HARP Refi’s

By: Rhonda Porter

Rhonda Porter — Sat, 04 Jul 2009 19:34:44 +0000

I’d rather see rates reduced with a shorter term (as this program encourages) than having mortgage balances forgiven.

By: Chris Opstedal

Chris Opstedal — Sat, 04 Jul 2009 19:15:17 +0000

125% ltv loans??? where have I heard those numbers before??? ummm, let me think thats right, Bear Stearns, World savings just to name a few that liked the sound of those numbers! Thanks US GOV for picking at that scab.

By: Rhonda Porter

Rhonda Porter — Fri, 03 Jul 2009 17:15:25 +0000

If someone elects to have a term shorter than 30year amtz, the LLPA is 0.5% less in fee.

Someone with a 720 or higher credit score does not have a credit score hit with LTVs up to 125%. The program does have 1.5-2% hit for LTVs 105% and higher.

This program is suppose to encourage paying down the principal quicker with a shorter term (like a 20 year) and lower rate. The refi has to make sense.

By: Rhonda Porter

Rhonda Porter — Fri, 03 Jul 2009 16:30:03 +0000

Here’s the updated FAQ’s https://www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf

By: Rhonda Porter

Rhonda Porter — Fri, 03 Jul 2009 16:27:11 +0000

The LLPA's for this are risked based and can be found by clicking the link above. Someone with excellent credit won't be whammo'd the same as someone with iffy credit.

It's not really subprime--I look at it as a loan mod for folks who are not in financial distress.

By: Michael Brown

Michael Brown — Fri, 03 Jul 2009 14:39:07 +0000

I think the bigger is the the Morgage Insurance. They have to get approval from the State Insurance Commissioner to get the premiums approved. Right now they are limited to 105%. So this may not help that many people as the original loan would have had to start at 80% or less (no mi) to qualify until the MI companies get state approval.

By: Michael Brown

Michael Brown — Fri, 03 Jul 2009 14:35:19 +0000

unfortunately, it won’t allow refi out of “normal” subprime. Your current loan must be owned by Fannie Mae to start with. Most of the typical subprime was owned by Fannie.

I will allow people to get out of the conventional arm products, but all those 2 and 3 yr subprime loans are still going to be at risk.

By: Jillayne Schlicke

Jillayne Schlicke — Fri, 03 Jul 2009 06:21:03 +0000

but....they're refinancing into subprime at 125% LTV. I can't imagine rates will be pretty on this product.

Also, I thought the subprime mess was mostly behind us. These 09 folks would likely be the Alt A and Prime ARM homeowners.

By: Rhonda Porter

Rhonda Porter — Fri, 03 Jul 2009 02:52:03 +0000

Exactly, I think it should be treated more like a FHA Streamline....and they could add having a job--FHA Streamline does not verify employment/income (currently).

If I'm not mistaken, Citi elected not to participate with the HARP program. Homeowners needing the higher LTVs will have to wait to see if their servicer will even deal with them.

By: Dianne T

Dianne T — Thu, 02 Jul 2009 22:16:19 +0000

Since most of the existing servicers are the “big names” like Citibank, Wells Fargo, Bank of America, Flagstar, etc. the homeowner is going to be waiting a long, long time to be able to refinance if they are not allowed to utilize the services of a Broker. Brokers can get loans done mucn faster than going directly to the source. My exiting home loan is serviced by Citimortgag and I would rather jump naked on a burning cactus than have to deal with anyone there dirctly UGH…FNMA had better change their tune soon and also get rid of the HVCC appraisal guidelines…that is the biggest problem to these refinances and why they take way too long!!!

FHA allows streamline refinances without an appraisal and with limited documentation; they have neen doing it this way for decades, why can’t FNMA follow suit..as long as the payments have been current!