HARP UPDATE

Yesterday, the Federal Housing Finance Agency announced enhancements to the Home Affordable Refinance Program (HARP), and extended the program until Dec. 31, 2013. The changes are designed to expand the number of borrowers with little or negative equity who can qualify for refinancing.

The Home Affordable Refinance Program allows homeowners in good payment standing, whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, to refinance and take advantage of today’s low interest rates. The program is especially helpful for customers who cannot obtain a standard refinance because their property value has declined. The Federal Housing Finance Agency announced enhancements to this program yesterday that will allow more customers to qualify.

Only borrowers who refinanced before May 31, 2009 and their loan is guaranteed by Fannie Mae or Freddie Mac are eligible to refinance through HARP.  In addition, borrowers who already have refinanced through HARP are not eligible to refinance through the program again. Fannie Mae and Freddie Mac plan to send the program guidelines required to offer this program to all lenders late November.

When we receive them, we will work quickly to make the changes required to support the implementation, including any potential changes to our Instant Quote System in order to offer the program to you as soon as possible.  It will take some time until the new HARP features will be available through our Instant Quote System.  At this time the original HARP features are available through our Instant Quote feature.  Please select the “streamline” option when you use the Instant Quote.

Feel free to call if you have any questions.