HARP 2.0 GUIDELINES

HARP 2.0 GUIDELINES:

March 22nd, 2012

Below are my official guidelines for HARP 2.0 Lending.  Not every lender has the same guidelines, so just because you don’t qualify with one does not mean you do not qualify with another.

Remember that you can not qualify for a HARP loan without your loan being backed by FANNIE MAE or FREDDIE MAC, and you must have taken the loan out before May of 2009 – no exceptions.  To find out if you are backed by FANNIE MAE or FREDDIE MAC, please follow the links below the guidelines.

HARP 2.0 GUIDELINES:  
FANNIE MAE DU REFI PLUS II
OCCUPANCY MAX LTV MAX CLTV w/2nd
PRIMARY 150% Unlimited
SECOND 125% 125%
INVESTMENT 105% 105%
 
FREDDIE MAC RELIEF OPEN ACCESS II
OCCUPANCY MAX LTV MAX CLTV w/2nd
PRIMARY 105% Unlimited
SECOND 105% Unlimited
INVESTMENT 105% Unlimited
* If loan is serviced by Flagstar – We can loan 125% LTV/CLTV on all occupancies

FANNIE MAE AND FREDDIE MAC LOOK UP: 

FANNIE MAE: http://www.fanniemae.com/loanlookup/

or

FREDDIE MAC: https://ww3.freddiemac.com/corporate/

HARP 2.0, Barrack Obama, Updated HARP, New HARP, New HARP guidelines, DU REFI PLUS, FANNIE MAE, FREDDIE MAC FORECLOSURE RELIEF, freddie mac open access, December 2011, Freddie Mac, No appraisal refinance, unlimited ltv, underwater, upside down, no equity, no appraisal refinance, Unlimited combined loan to value, 125% ltv, 105% ltv, 150% ltv, March 2012.  Refinancing for Arizona, Colorado, and California.

HARP 2.0 GUIDELINES

HARP 2.0 – IS IT FINALLY HERE?

HARP 2.0 – IS IT FINALLY HERE?

In November 2011, President Obama announced the existence of a HARP 2.0 product that was going to help more and more underwater home owners refinance into a lower interest rate loan. 

The release date was supposed to be in December 2011, but unfortunately no lenders would offer it.  Finally lenders will start offering this product..  I can offer Freddie Mac Harp 2.0 loans on Monday March 12th, and Fannie Mae Harp 2.0 loans on Monday, March 19th.  Here are the main details of HARP 2.0: 

HARP 2.0:

1.)  You must be in a FANNIE MAE or FREDDIE MAC loan taken out before May of 2009.  You can check if you are here:

FANNIE MAE: http://www.fanniemae.com/loanlookup/

or

FREDDIE MAC: https://ww3.freddiemac.com/corporate/

2.)  The LTV allowable was originally announced as unlimited, but it appears lenders are afraid to offer that at this point.  I don’t have all the details yet, but I think the Loan to Value limit will either be 150% or 125%, and unlimited combined loan to value when subordinating a second.  HARP 2.0 is only for 1st Mortgages. 

3.)  Most HARP 2.0 loans will not need an appraisal.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

This program will help the underwater homeowners that have stayed in their home and maintained their payment, to lower their interest rate to the current market levels.  This is a great product, and I think this is a step in the right direction for our industry.

HARP 2.0, Barrack Obama, Updated HARP, New HARP, New HARP guidelines, DU REFI PLUS, FANNIE MAE, FREDDIE MAC FORECLOSURE RELIEF, freddie mac open access, December 2011, Freddie Mac, No appraisal refinance, unlimited ltv, underwater, upside down, no equity, no appraisal refinance, 125% LTV, unlimited CLTV, HARP 2.0 for March 2012, HARP 2.0 interest rates, eligibility for HARP 2.0, Today’s Interest Rates for Harp 2.0,  Refinancing for Arizona, Colorado, and California.

HARP 2.0 – Is it Finally Here?

BANKS ACCEPTING MORE SHORT SALES IN MARICOPA COUNTY, ARIZONA

BANKS ACCEPTING MORE DISTRESSED SALES IN MARICOPA COUNTY

March 2nd, 2012

When the housing bubble first burst in Arizona, most banks were taking back delinquent properties versus working with home owner’s to sell their property at a loss. 

Recent statistics show that banks are more and more likely to accept a short sale or sell the home at an investor auction versus taking back a delinquent home.  This is encouraging for homeowners exploring a short sale, as data suggests that there is a higher likelihood of a short sale going through.   

There are many benefits to a short sale – the most important one being that most short sales include a clause where the homeowner is no longer responsible to repay the bank.  When a home is foreclosed upon and taken back, the bank can come after you for a numbers years if they should choose to do so.

STATISTICS FOR DISTRESSED SALES AND TAKE BACKS IN MARICOPA COUNTY:

In 2011, There were 62,156 distressed title transfers

34,634 were short sales or investor sales   /   27,522 were properties taken back.

In 2010, There were 67,208 distressed title transfers

28,490 were short sales or investor sales   /   38,718 were properties taken back by the bank.

In 2009, There were 60,682 distressed title transfers

20,065 were short sales or investor sales   /   40,797 were properties taken back by the bank.

As more and more banks are willing to accept short sales, delinquent homeowners should attempt to work on a short sale versus giving the property back.  In most cases, a homeowner will get a check for closing a short sale and they do not have to worry about the bank coming after them in the future for losses incurred.

*data obtained from Fletcher Wilcox at Grand Canyon Title Agency.

BANKS ACCEPTING MORE SHORT SALES IN MARICOPA COUNTY, ARIZONA

30 YEAR FIXED AT 3.75% / WHAT DOES THE U.S. 25 BILLION BANK SETTLEMENT MEAN TO ME?

TODAY’S MORTGAGE RATES: 

February 13th, 2012

The MBS Market closed last week trading down (- 31 bps).   Mortgage rates haven’t seen much positive momentum since they hit their all time lows 2 weeks ago.  Pricing has slowly risen since then, as is typical when a very low rate/pricing is reached. The lowest rate pricing usually only lasts for a couple of days.  Rate shoppers and borrowers not ready to lock quickly will usually miss locking in at the best pricing. 

This is another week that should be relatively calm.

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .95 points, 4% paying 0 points

20 year fixed: 3.5% paying 1 point, 3.875% paying 0 points

15 year fixed: 3% paying .89 points, 3.375% paying 0 points

5/1 ARM: 2.625% paying 1 point, 3.125% paying 0 points

7/1 ARM: 3% paying .71 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying .78 points, 4.25% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 2.875% paying .61 points, 3.125% paying 0 points

30 year fixed VA: 3.75% paying 0 points


THE U.S. 25 BILLION BANK SETTLEMENT – WHAT DOES IT MEAN FOR ME?

Last week, The US and 5 major US banks reached a 25 billion settlement meant to help homeowners who are delinquent or pose a threat to go delinquent.  The deal is the result of the major banks settling to help make right some illegal/unethical processes that took place in many loans written during the boom. 

So who will this settlement help?

The reality is that the 25 billion dollar settlement will help very few homeowners.  There are an estimated 11 million homeowners in the country that are upside down on their mortgage and another 6 million currently behind on their payment or facing foreclosure.  The Obama administration estimates this could help 1 million homeowners.  I remain skeptical, especially with the multitude of other failed bills meant to help the housing market.

Here is how it works – the Major Banks:

  • BANK OF AMERICA
  • WELLS FARGO
  • CITI GROUP
  • CHASE
  • ALLY FINANCIAL (FORMERLY GMAC)

Will put money aside to help delinquent or risk to go delinquent borrowers lower their payments, possibly reduce their principal, and get into payment plans to help customers become current on their delinquent mortgage.

The only borrowers eligible will be serviced by the above 5 banks.  If you are not, you are not eligible.  You are also not eligible if you are currently in a FANNIE MAE or FREDDIE MAC backed mortgage – the government agencies that back the majority of the mortgage in the country.

In all likelihood, the plan will not actually start for another 10-12 months. Eligible homeowners will be contacted by their servicer. 

So in conclusion – you will most likely not be eligible unless:

1.)     You are substantially upside down.  I talk to homeowners all the time that want to take advantage of government programs but have equity in their home and also have good credit and income.  If you could qualify for a refinance, you are not likely to ever qualify for these programs.

2.)    You are currently late or in danger of going late – typically homeowners that are upside down.

3.)    You current loan is with Bank of America, Wells Fargo, GMAC (Ally), Citigroup, or Chase.

4.)    Your loan is NOT backed by Fannie Mae or Freddie Mac.

5.)     This settlement will likely only apply to 1st Mortgages – not to 1st and 2nd’s if you have 2 mortgages. 

A small portion of American homeowners will benefit from this settlement, but the vast majority will have to go by existing refinance guidelines to change their current loan.

 

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rate Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

30 Year Fixed at 3.75% / What does the U.S. 25 billion bank settlement mean to me?

LOWEST MORTGAGE RATES EVER!! – OBAMA’S MASS REFINANCING PROGRAM

LOWEST MORTGAGE RATES EVER!!

January 9th, 2012

The MBS Market closed last week trading up (+ 25bps).  This was another great week for interest rates that saw fixed rates reach their LOWEST LEVELS EVER!!  In the history of the mortgage industry, borrowers have never been able to get better mortgage pricing than they can now.  It’s a pretty good time to be doing a mortgage. 

Rates might have dropped even lower if Congress did not pass HR3630.

I mentioned HR3630 in previous updates.  Congress is charging increased fees to homeowners to extend the employment taxes.  This comes in the form of Fannie Mae increasing guaranteed pricing to lenders which have to pass that on to borrowers.  This change goes into effect on loans delivered to Fannie Mae after February 10th.  Since most lenders lock on 30 day locks – this change will go into effect with almost every lender by the end of the week. 

This means that mortgage rate pricing should go up approximately .3 pts on every rate or .125% higher on the rate for the same costs.      

This can be offset if the MBS market continues to trade higher, but the market has trended up for almost 2 months – it will turn eventually. 

Below are rates available today paying a point or less:

30 year fixed: 3.75% paying .99 points, 4% paying 0 points

20 year fixed: 3.75% paying .1 points, 3.875% paying 0 points

15 year fixed: 3.125% paying .85 points, 3.25% paying 0 points

5/1 ARM: 2.5% paying .92 points, 2.875% paying 0 points

7/1 ARM: 2.875% paying .95 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4% paying 1 point, 4.375% paying 0 points

30 year fixed FHA: 3.75% paying 0 points

15 year fixed FHA: 3.25% paying .0 points

30 year fixed VA: 3.75% paying 0 points


OBAMA’S MASS REFINANCING PROGRAM

There is a lot of chatter that a Mass Refinance Program could be released by President Obama before the elections.

The chatter centers around the possibility of President Obama replacing the current FHFA director with one of his own.  This would allow the President to implement his own guidelines for FANNIE MAE, FREDDIE MAC, FHA and VA.

The plan is said to allow borrowers to refinance their current loans to today’s low rates without:

AN APPRAISAL OR LTV REQUIREMENTS

CREDIT REQUIREMENTS OUTSIDE OF MORTGAGE HISTORY

INCOME REQUIREMENTS

ASSET REQUIREMENTS

The main requirement would be that the borrower has to be current on their existing mortgage for the past 3 months.  This is only for rate and term refinancing – no cash out.  This is also only for first mortgages – not combining a 1st and 2nd

So this basically takes out the main things blocking a lot of people from refinancing.  If this plan is implemented, we could see mass refinancing across the nation.  Now keep in mind this plan is meant for people that CAN NOT refinance with the current guidelines.  For example, if you have a lot of equity, good credit, and qualifying income – this plan is not going to offer you anything that is not currently on the market.

This plan is meant to help people that are upside down, low equity, bad credit, can’t prove their income, etc.

Watch for more updates on if this plan comes to fruition.  This should be very interesting to say the least. 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

Lowest Mortgage Rates Ever – Obama’s Mass Refinancing Program

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

MORTGAGE RATES IMPROVE:

December 5th, 2011

Fixed Mortgage rates improved slightly last week with the bond market closing + 53 bps.  ARM pricing has started to creep a bit higher lately.  ARM loans are less tied to the bond market than fixed loans are. 

There is not too much data coming into the markets this week.  The leaders in Europe are meeting on Friday to continue debt talks, but I don’t expect too much to come of that.

I still feel that the long term outlook is that mortgage rates will start to rise slowly in the coming weeks and months. 

Below are rates available today paying a point or less:

30 year fixed: 3.875% paying .653 point, 4.125% paying 0 points

20 year fixed: 3.75% paying .935 points, 4% paying 0 points

15 year fixed: 3.25% paying .725 points, 3.5% paying 0 points

5/1 ARM: 2.5% paying .97 points; 2.875% paying 0 points

7/1 ARM: 2.875% paying .883 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying .817 points, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .605 points, 3.99% paying 0 points

15 year fixed FHA: 3.25% paying .867 points, 3.5% paying 0 points

30 year fixed VA: 3.75% paying 0 points

HARP 2.0 UPDATE

When dealing with a new agency product, typically the big lenders announce when they are coming out and everybody falls in line.  The only lender I know of that has publicized HARP 2.0 updates is Wells Fargo.  They are releasing their HARP 2.0 rate sheets next week but are not offering the product for underwriting.

Many direct lenders have lines of credit from bigger banks to fund their loans.  Wells Fargo is an investor in my company as well as many, many other lenders.  Thus we will get it at the same time.

It is now starting to appear that the HARP 2.0 product may not make it to the market for some time.  As always, I will keep you updated on any new developments.    

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

MORTGAGE PRICING IMPROVES ; HARP 2.0 UPDATE

TODAY’S MORTGAGE RATES , HARP 2.0 GUIDELINES RELEASED

TODAY’S MORTGAGE RATES:

November 21st, 2011

The bond market closed another see-saw type week with trading ending at + 6 bps on the week.  Mortgage interest rate pricing has basically stayed the same and I expect more of the same results this week.  Although this is a work shortened week in America, Europe and Asia are business as usual.  There are not any major reports or events on the horizon this week that should raise or lower rates too much.

Have a happy and safe Thanksgiving with your family!!

Below are rates available paying a point or less: 

30 year fixed: 3.875% paying 1 point,  4.125% paying 0 points

20 year fixed: 3.875% paying .53 point, 4% paying 0 points

15 year fixed: 3.25% paying .85 points, 3.625% paying 0 points

5/1 ARM: 2.5% paying .78 points; 2.75% paying 0 points

7/1 ARM: 2.875% paying .92 points, 3.25% paying 0 points

30 year fixed High Balance Loan: 4.25% paying 1 point, 4.5% paying 0 points

30 year fixed FHA: 3.75% paying .54 points, 3.99% paying 0 points

15 year fixed FHA: 3.375% paying .66 points, 3.625% paying 0 points

30 year fixed VA: 3.75% paying 0 points


HARP 2.0 – WHO IS ELLIGIBLE?

HARP 2.0 is now only two weeks away.  The new guidelines were released this week and below are the MAIN changes. 

REMINDER:  A HARP loan is a product that allows homeowners backed by a Fannie Mae or Freddie Mac loan the ability to refinance their loan at up to 125% of the value with no mortgage insurance as long as they don’t have it currently.  The original loan must have been delivered to Fannie Mae or Freddie Mac by May of 2009.  Below are changes that will allow more homeowners to take advantage of this product.

HARP 2.0:

1.)  Starts with applications dated December 1st or later.

2.)  The biggest change – removing the 125% barrier for fixed loans.  There is an unlimited LTV for fixed loans and a max 105% LTV for ARM loans and loans with terms over 30 years.

3.)  Another biggie – eliminates the need for an appraisal or automated valuation model to complete the loan.

4.)  Allows 1 30 day late in the past 12 months – as long as it is not within the most recent 6 months.

5.)  Before, you had to have the same occupancy as when you took out the original loan.  This has now been lifted.  For example, you could not complete a HARP loan on an original primary residence that is now a rental.  Now you can.

6.)  Fannie Mae is removing the waiting periods for short sales and foreclosures for this product.

This program will help the underwater homeowners that have stayed in their home and maintained their payment, to lower their interest rate to the current market levels.  This is a great product, and I think this is a step in the right direction for our industry.

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HAVE A GREAT THANKSGIVING!!

 

 

Today’s Mortgage Interest Rates.  Current Mortgage Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Mortgage Rates Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline mortgages, Conforming mortgages, Conventional Mortgages, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages,  and Jumbo Mortgages.

TODAY’S MORTGAGE RATES, HARP 2.0 GUIDELINES RELEASE