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Sunday, March 25, 2012

Update on HARP 2

by Calculated Risk on 3/25/2012 01:20:00 PM

Kathleen Pender has some details at the SF Chronicle: Harp 2 mortgage-refinance program

Harp 2 got into full swing last week after Fannie Mae and Freddie Mac updated their automated underwriting systems ... Fannie and Freddie updated their systems March 17 and 15, respectively. That means lenders can now refinance any loans, and do it more efficiently. ...

Banks are free to add their own requirements, and some have. Wells Fargo spokesman Jim Hines says, "We also employ minimum credit standards to ensure customers have capacity to repay the mortgage." Some banks, including Chase and Bank of America, are not refinancing loans under Harp 2 that they do not already service. ... originators - who often continue to service loans they sell to Fannie or Freddie - don't want all the headaches associated with servicing defaulted loans. That's why some lenders are still imposing loan-to-value limits and other requirements.
This means high LTV borrowers will probably have to stick with their current servicer to refinance - and the servicer can charge high fees for the refinance. Still - with the automated version - we should see an increase in HARP refinance activity.

Summary for Week ending March 23rd
Schedule for Week of March 25th