HARP 3.0 News – LoanLove.com Answers Some Questions About The Proposed Revisions To The Refinance Program

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A new guide from LoanLove.com takes a look at the history, challenges faced, and potential future of the Home Affordable Refinance Program.

LoanLove.com, a website with the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and U.S. financial landscape in order to help them obtain a home loan that they will love, shares some HARP 3.0 news in a new online article. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. This recent article explains what changes and extensions are being considered by the government regarding the HARP program in 2014.

The new guide explains, “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. But that doesn’t mean it’s been smooth sailing for HARP from the start. HARP and other mortgage modification programs were first introduced in 2009, but the help they provided was extremely limited. An analysis in early 2011 found 54.3 percent of an estimated 1,426,833 proposed mortgage modifications ended up failing in the end. Despite assistance, more than half fell back into foreclosure.”

The article goes on to explain that the introduction of HARP 2.0 in March of 2012 vastly improved the program and was a result of major reconfigurations by the White House and federal regulators driven by Fannie Mae and Freddie Mac. However, although this solved many of the original program’s shortcomings, HARP 2.0 was still lacking on many fronts. Loan Love explains,

“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.”

Unfortunately, the Loan Love article points out that so far attempts to get a new version of the HARP program pushed through have been unsuccessful. It explains, “With the changing of the guard at the Federal Housing Finance Agency, there had been renewed hope that there will be a stronger push for some type of HARP 3.0 in 2014. The new director, Mel Watt, was expected to be more aggressive in pursuing HARP 3.0 program proposals. 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.”

For more information on a potential HARP 3.0 update, click here to read the full article at LoanLove.com.

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Kevin Blue
Loan Love
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