California HARP Applications Trend Lower Refinance Volume in Recent Report

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Harp Mortgage Lender reports that the volume on California HARP applications are trending lower in second quarter as mortgage rates continue to rise.

California HARP Applications Trend Lower Refinance Volume in Recent Report

California Mortgage Rates are rising and California HARP Refinance Loan Applications are trying to keep up...

HARP Mortgage Lender (, a national network of mortgage professionals who are approved for the Home Affordable Refinance Program, reported that California HARP applications have dropped in the second quarter of 2013 as mortgage rates continue to rise.

The California Home Affordable Refinance Program (HARP) was revised in late 2011 through an agreement initiated by the Obama Administration’s #MyRefi plan between the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac to help severely underwater homeowners refinance into lower rates or better terms without the traditional obstacles of appraised values or other red tape getting in the way.

CLICK HERE to see if your loan is eligible for a HARP Refinance.

According to the most recent Refinance Report published by the Federal Housing Finance Agency (FHFA) on July 25, 2013, the total volume of HARP applications in California dropped from 14,448 in April to 11,154 in May.

The Loan-to-Value (LTV) breakdown for California is as follows:

80% - 105% LTV = 5,424
105% - 125% LTV = 2,619
Greater than 125% LTV = 3,111

For the most severely underwater homeowners with LTV ratios above 125% of their appraised values, there were 3,111 properties refinanced in May vs. 4,326 in April’s report.

“This 1,200+ swing in total higher LTV California HARP refinances may be due in part to a small jump in interest rates,” says Mark Madsen, CEO. “However, I anticipate that we will see an increase in the number of HARP Refinances in CA as the remaining underwater homeowners realize that sitting on the sidelines and waiting for 30 year mortgage rates to drop below their historic lows may end up costing them more money.”

The negative equity share for California based on the findings of CoreLogic (analytics and business services) reported back in June 2013 for the last quarterly report was 21.3 percent out of 6,747,000 properties on top of that; the aggregated collection of units for homes with near negative equity was 3.4 percent. Near negative equity homes can eventually lead to additional underwater mortgages.

RealtyTrac (the leading online marketplace for foreclosure properties and real estate data), released its U.S. Foreclosure Market Report for April 30, 2013. California alone showed a result of 12 percent lower than the previous month and 68 percent lower than the same time last year which is good news compared to other not so good news.

The HARP Refi program in California has certainly been the key to opening up a new lower mortgage payment for many homeowners, and it would be no surprise if the refinance volume for HARP shows an increase in the next FHFA analysis report, since the program does not expire until December of 2015.

About HARP

The Home Affordable Refinance Program was amended in October of 2011 through an agreement between the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac, which simplified the accessibility of the program for California borrowers looking to refinance through mortgage lenders.

CA HARP 2.0 eligibility guidelines:

1) Fannie Mae or Freddie Mac owns or has guaranteed first loan.
2) Fannie or Freddie purchased the loan prior to May 31, 2009.
3) Borrowers must be current with mortgage payments.
4) Borrowers owe more than their home is worth, or there is minimal equity.
5) All mortgage payments have been prompt in the past 6 months.
6) No sixty (60) day late payments in the last 12 months.

Click HERE to check HARP Eligibility

HARP Mortgage Lender is a nationwide online network of home loan professionals and lending institutions that are authorized to deal in the Obama Administration’s revamped versions of the Home Affordable Refinance Program (HARP 2.0 - 3.0). To learn more from a HARP specialist, call toll-free at 888-460-2939.

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Mark Madsen
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