The Federal Home Finance Agency (FHFA) made a recent HARP update. As of late last year, the new start date for HARP-eligible loans must be on, or before, May 31, 2009 where “start date” is defined as the date on the mortgage. Previously, HARP was only available to homeowners whose mortgages were sold and securitized on, or before, May 31, 2009. It’s a small change, but one that puts the “Obama Refi” within reach of additional U.S. HARP: Saving Homeowners $21 Billion Annually? The Home Affordable Refinance Program is nearly 5 years old.
It was first introduced in March 2009 as part of that year’s economic stimulus, and is available through the program’s December 31, 2015 end date — days from now. HARP is touted as the “underwater mortgage”. Excel for mac if statement with multiple conditions. It makes today’s low mortgage rates available to homeowners whose homes have lost value since purchase. When it first launched, HARP was timely. Home values were sinking as fast and mortgage rates were, too. Homeowners with Fannie Mae- and Freddie Mac-backed mortgages, however, were unable to refinance.
They lacked sufficient home equity to qualify for a loan. HARP mortgage guidelines instructed lenders to overlook a homeowner’s and to refinance their home loan anyway. Interestingly, HARP was not billed as a housing market stimulus but, rather, an economic one. The government’s goal with HARP was to boost consumer spending. By giving U.S.
Fannie Mae and Freddie Mac buy mortgages from lenders and either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending. Now, though, again, Fannie Mae and Freddie Mac have tinkered with HARP. The first change was to extend the program deadline by two years to December 31, 2015.
Note: Be sure and check your address on both the Fannie Mae and Freddie Mac look-up tool. If your address does not appear in the look-up tool of either site, your loan is not owned by Fannie Mae or Freddie Mac and you are not eligible for the program.