February 5th, 2013 8:51 AM by Preston Ware
I am constantly being approached by unlucky customers who fall just outside of the latest HARP 2.0 guidelines. (Home Affordable Refinance Program) This program of course was designed to help underwater homeowners refinance their mortgage and lower payments.
Many of the people I have been speaking with are customers who don't have a loan owned by Fannie Mae or Freddie Mac, or have a loan that was bought after the June 1, 2009 deadline or have a jumbo mortgage.
Now that the Obama administration has been elected for a second term, there is a better chance that we will see HARP 3.0 before the year is out. HARP 2.0 is slated to end by the end of 2013 and the program has succeeded in providing stimulus to our economy so I would imagine that Ben Beranke and friends would want to keep this stimulus to our economy alive for another couple of years.
The changes that will most likely occur with HARP 3.0 are:
1.) The waiving of the time constraint of a loan being bought by Fannie Mae or Freddie Mac prior to June 1 , 2009. You have to remember that when the original HARP program came out it was 2010. Now that rates have continued to drop many customers that were borderline are perfectly good refinances.
2.) Loans that are not owned by Fannie Mae or Freddie Mac will be included. Although there were less of these types of loans going on at the time there were certain "Stated" or "Alt-A" type loans that helped customer with different circumstances such as being self employed and reporting little income. Stated has since become a dirty word but many of these customers stated their loan for the sake of simplicity and less paperwork and now they are paying the price for it. Regardless if these customers are paying their mortgage on time, they should have a "right to a refi".
3.) Jumbo loans which are not serviced by Fannie and Freddie will most likely be included as well. Although these customers typically may not be president Obama supporters, they certainly stand to offer the most stimulus for our economy. If a customer is saving $500 or more a month on his or her mortgage, that is $500 every month that now becomes, savings, or money used to lower credit card debt or money spent back in our recovering economy.
To stay abreast of the latest changes please follow me here at my blog, or on Twitter (@MortgagesUSA123), subscribe to my videos on You Tube or on my other blog on Trulia. I already have a folder of 10 customers who are waiting for the changes and will let you know as soon as the flood gates open up again. Thank you and see you on the next blog!