Will the 3rd time be the charm? Will Harp 3 save the day? Here is the latest HARP 3 news:
Ever since 20098 when Congress introduced a program called Refi Plus for homeowners with loans that are guaranteed by Fannie Mae of Freddie Mac, there have been borrowers left out in the cold. And despite repeated attempts by Congress to introduce new programs for responsible home owners with a mortgage balance greater than the value of their home. However most of these programs have fallen far short of the anticipated windfall.
Instead of the millions predicted who would be able to refinance only a small percentage of those people could actually get approvals. Although Congress puts forth certain guidelines, in many cases the lenders have been unwilling to participate according to the terms put forth in the program. Due to reps and warrants mortgage lenders fear the repercussions on making loans on home that have low value or upside down mortgages. In addition many homeowners that were responsible but did not have a loan guaranteed by Fannie Mae or Freddie Mac were complaining that the was no help available for them. Now there may be hope for these homeowners should Congress pass HARP 3 – the latest interation of the Government Refinance Program.
homeowner-friendly mortgage programs including the HARP refinance, the FHA Streamline Refinance, the USDA Streamline Refinance and other low-equity loan terms.
Just because the government creates a mortgage program, though, that doesn’t mean that mortgage banks will adopt it.
HARP 2.0 was an attempt to get additional mortgage lenders to participate in the HARP mortgage program. Now, the White House is requesting a second round of updates to Home Affordable Refinance Program.
- Freddie-to-Freddie loans
Under the proposed terms for HARP 3, a HARP homeowner could, theoretically, receive a pre-approved mortgage application by mail or secure email, which would only require signatures for a final approval. The HARP mortgage approval process would, truly, be a streamlined one.
HARP 3 is just in discussion phases now and, if it passes, its final form may not resemble the loan described above.