Friday, December 16, 2011

Upcoming Changes to HARP

This week Fannie Mae has announced changes will be made to Desktop Underwriter or DU come March of 2012. DU is Fannie Mae's Automated Underwriting System (AUS) that determines a borrowers eligibility and dictates how each loan is to be underwritten for loans to be sold under their platform. The reason for the overhaul is to allow for updated findings to incorporate the expansion of Home Affordable Refinance Program, a.k.a. HARP, DU Refi, and DU Refi Plus.

The expansion, dubbed HARP 2.0 by many, will include the following changes:

  • Maximum Loan to Value or LTV currently capped at 105% is to be removed. No limit will be in place.
  • Loan Level Price Adjustments or LLPA's will be reduced and adjustments made for higher LTV's.
  • The caps on the LLPA's are to be reduced. 
Individual lender credit overlays have made refinances under HARP extremely difficult to execute in the past. There is a great deal of skepticism as to whether or not any relief will be realized for underwater homeowners. 
For a little background you can view a few other posts here.

To apply for this or any other loan program contact me today.


Disclaimer: Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.  
If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: