Freddie Mac's implementation of the Home Affordable Refinance program
, known as the Relief Refinance Mortgage, may be used to reduce the borrower's interest rate, shorten the loan repayment period or replace an adjustable-rate mortgage, interest-only mortgage or balloon or reset mortgage with a fixed-rate loan.
The lower earnings forecast for servicers was driven by portfolio runoff, higher compliance costs and declining mortgage profitability, as the opportunity associated with the Home Affordable Refinance Program
(HARP) declines, KBW analysts said.
Although many credit unions may not have realized it, the second version of the federal government's Home Affordable Refinance Program
is a more workable and beneficial for both borrowers and credit unions than its predecessor, according to housing finance executives at credit unions that have begun making the loans.
Home Affordable Refinance Program
loans are granted relief after a clean payment history of 12 months.
Corr noted that Home Affordable Refinance Program
(HARP) loans for high-loan-to-value (high-LTV) mortgages continued their resurgence in the August data.
The changes to the Home Affordable Refinance Program
include removing the current 125% loan-to-value ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac; waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie and Freddie; eliminating the need for new property appraisals in some refinancing transactions; and extending the end-date for the program from June 2012 to Dec.
Hernandez said that only about 40 percent of HOPE Hotline callers who are current with their mortgage payments appear to qualify for the expanded Home Affordable Refinance Program
Finally, the 2015 model has flexibility to respond to new government incentive programs or changes to existing programs, such as the Home Affordable Refinance Program
This drop in interest rates, coupled with expanding loan programs such as the Home Affordable Refinance Program
(HARP), HARP 2.
Additionally, the Home Affordable Refinance Program
aims to help four to five million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac who are current on their mortgages to refinance into more affordable monthly payments.
Fitch anticipates that several catalysts for growth including reduced housing inventory, historical low interest rates, and government programs such as the Home Affordable Refinance Program
If you are one of those millions, help could be available to you through one of the best-kept secrets among government housing programs: the Home Affordable Refinance Program