Monday, March 11, 2013

HARP 3.0 Will we EVER see it come to life?

Millions of homeowners are waiting for HARP 3.0 to come to life. Many of us in the mortgage industry are wondering if this will ever happen. It’s greatly needed and will open up refinancing options for millions of homeowner with loans that do not fall under the Fannie Mae or Freddie Mac umbrella.

HARP 3.0 was introduced by U.S. Senators Barbara Boxer and Robert Menendez, Senate Bill 3085. Expanding the affordable refinancing of mortgages held by the Federal National Mortgage Association and the Federal Home Loan Corporation.
President Obama rolled out a #MyRefi Campaign to support HARP 3.0 with Social Media

  • #MyRefi is a White House initiated social media campaign.
  • The Refi program is a HARP 3 mass refinancing program for those homeowner's not supported by Fannie or Freddie
  • The Refi Plan will allow underwater borrowers to refinance with limited credit requirements.

If you are one of those homeowners in waiting I believe the only way to get HARP 3.0 available is to contact your Senators and Congressman/woman and tell them your story. Put the pressure on them and ask them to support this bill. Keeping this issue in front of them and the pressure on to make HARP 3.0 a reality is key to getting it passed.

We are hoping that HARP 3.0 will have most if not all the same guidelines as HARP 2.0 with unlimited Loan To Value (LTV) and appraisal waivers. We also have to get rid of the obstacles like 2nd mortgages and their ability to deny subordinating a new 1st mortgage and MI mortgage insurance companies currently will not renew the insurance if the loan is refinanced which doesn’t make sense on the risk factor they face if the homeowner defaults.  On the other hand if they are able to refinance with a better rate and lower payment there is less risk.  Understanding risk with these loans as I believe been why HARP 3.0 has not happened. If risk factors were put in place just like they did with HARP 2.0 revisions, we could all get pasted this hurdle and start helping responsible home owners reduce they mortgage payments and hold onto their homes. This is a win win for all as neighborhoods will rebound and the saved money can go back into new consumer purchasing and help our economy.

Start by contacting your Senators and legislators’ to get this passed and available.

 If you have any questions please don’t hesitate to contact me. I welcome your comments and questions. Thank you for stopping by today.

Roxy Redenbaugh
ACMC Loan Consultant
Branch Manager
NMLS #269926

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