HARP Extended for Another Year, Plus Good News for FHA Borrowers

Home Affordable Refinance Program (HARP) Extended For Another Year, Plus Good News For FHA Borrowers

September 7, 2016  |  by Ellen

dreamstime_xs_33284398The refinance program that has seen 3.4 million homeowners reduce their mortgage burden ever since the recession is going to be extended until October 2017, at which point another FHFA-sponsored refinance assistance program is going to be in place.

That program has some early details revealed on the FHFA website, which include the following:

•   Must not have missed any mortgage payments in the previous six months;
•   Must not have missed more than one payment in the previous 12 months;
•   Must have a source of income; and
•   Must receive a benefit from the refinance such as a reduction in their monthly mortgage payment.

Full details will be available in the coming months through the Enterprises, but the offering will make use of the lessons learned from the Home Affordable Refinance Program (HARP) and its streamlined approach to refinancing.

The FHFA estimates that another 300,000 homeowners could benefit from HARP or a similar program so the agency will continue to provide an outlet for high Loan-To-Value borrowers who are struggling to make payments.

Since HARP applies to mortgages backed by Freddie Mac and Fannie Mae, FHA borrowers will also be relieved to hear the Federal Housing Authority has announced it is streamlining the loss mitigation process and removing certain obstacles for both borrowers and servicers (their program has been called HAMP–the Home Affordable Modification Program). Their new rules must be in place by by Dec. 1, 2016 and according to their website includes the following provisions:

•   Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months
•   Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their arrearages current versus the previous four-month minimum
•   End the traditional stand-alone loan modification option so borrowers can access the FHA-HAMP option, with its greater payment relief, sooner
•   Eliminate the minimum 12-month delinquency term to qualify for FHA’s special forbearance option, which will allow servicers extend this option to unemployed households sooner in their delinquency.

– See more at: http://mrisblog.com/industry-news/home-affordable-refinance-program-harp-extended-for-another-year-plus-good-news-for-fha-borrowers/#sthash.fYKBsP7O.dpuf