The latest HARP? It's not quite that simple!

Good morning all! Happy Tuesday!

I saw that the government is planning on rolling out a new idea. It will be a refinance program for anyone who had a loan owned by Fannie Mae and Freddy Mac prior to 2009 regardless of loan-to-value. The stipulation is you must be current on your mortgage payments along with the rest of the necessary requirements such as credit and income.

First of all, I applaud them for continuing to try and find fixes for our economy and specifically the housing market. Most of the past programs (HAMP. HARP, etc.) have been marginally effective. That's why I'm not so sure the latest HARP will be so simple!

The bottom line is this. You can be way upside down on your loan but it might not be owned by either Fannie Mae or Freddy Mac. In fact, a lot of loans originated back in the day (from 2003-2007) weren't owned by Fannie Mae or Freddy Mac. In other words, the new HARP won't help.

The second variable will be if the different lenders will actually allow refinances regardless of loan-to-value. Yes, there have been plenty of loans done above 100% loan-to-value through programs such as Fannie Mae DU Refi. Plus. And this could be a boon for all of us loan officers as it adds another quiver to our basket. But, again, a new HARP program, although in theory a great idea, isn't that simple!

What will win out in the end? Time. It takes time to work through the ups and downs that were created the past several years. Eventually we'll see a healthy and normal market again. But until that time, don't expect miracles. Thanks for reading! If you have further questions or thoughts feel free to

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