San Diego, CA (PRWEB) April 21, 2014
Will the Home Affordable Refinance Program (HARP) see some much needed updates this year in the form of a HARP 3.0 program? Loan Love’s new guide to the possible HARP 3.0 update takes a look at this possibility and reviews the history of the refinance program. As a trusted destination for current news and expert loan advice, LoanLove.com has been empowering homeowners with first-class knowledge, valuable resources, and connections to top-rated industry professionals. The new guide to HARP 3.0 legislation continues to keep borrowers up to date with the latest news that may affect their home loan options.
This new HARP guide from Loan Love says, “The current HARP program, known as HARP 2.0, targets homeowners who are up-to-date on their mortgage payments, but have been unable to leave predatory mortgage situations behind. Their home’s value plummeted during the economic crisis and now they are unable to secure traditional refinancing. The HARP program’s goal is to help such homeowners achieve a new, more affordable and stable mortgage—something that had seemed far out of reach before the program came along.”
However, the article notes that while the loan refinance program has helped many, it has not always been smooth sailing. It says, “While HARP has helped over 3 million home owners, it is not without its shortcomings. First, even when borrowers successfully met Fannie Mae and Freddie Mac guidelines, they often found it difficult to locate a lender who would approve a HARP 2.0 loan. Second, if a loan was not owned by Fannie Mae or Freddie Mac, it did not qualify for the current HARP program at all. These two significant challenges have fueled support for creating a new and improved version of HARP legislation. There are some who believe this would best be done through an entirely new piece of legislation, or HARP 3.0, that would target borrowers with loans originating before June 1, 2009, and not be constrained to working only with loans owned by Fannie Mae or Freddie Mac.”
The Loan Love guide explains while there has been a lot of talk of a HARP update, nothing has happened so far. The new director of the Federal Housing Finance Agency, Mel Watt, was expected to be more agreeable to proposals for some type of HARP 3.0 update in 2014. However, in remarks made January 22, Michael Stegman, the top housing policy advisor at the Treasury Department, said his Department believed there should be no change in the HARP eligibility date.
Loan Love says, “While FHFA Director Watt has not made public any plans regarding changes he might make to HARP, it is likely he will not break from the partisan position stated by Stegman. That means any tweaks to the program are not likely to involve Congress and hope for substantial changes is beginning to fade.”
For more information on the HARP, click here to read the full article at LoanLove.com.