Why your lenders aren't offering HARP 2 NOW

[Erik Sandstrom]

Many people have been asking me why their lenders wont process their application for HARP 2, and also wondering why I can and they can't.

Here's a few reasons:
1. DU will be updated during the weekend of March 17, 2012 to recognize LTV ratios greater than 125%. This means for the system to be reflecting the changes with the appraisal waivers will not take effect until March 17th. One reason not to wait until March 17th? You will already have your new mortgage and if there's an appraisal required most likely you will have saved that in one or two months of your new mortgage payment. Another reason - You might just get an appraisal waiver! And yet a final reason we can always get the appraisal credited back onto your loan at closing.

2. Unlimited LTV's are allowed effective with loan applications taken on or after January 1st, 2012 (with WJ Bradley).

3. 10 and 15 year terms will be allowed with closings May 25th, 2012 and loan deliveries to FNMA on June 1, 2012.

4. Loans cannot close until the transaction has a completely NEW DU run after March 17th, 2012 and receives a feedback of Approve/Eligible.

5. SOME loans may still be eligible for a Property Inspection Waiver - this waiver comes with a $75.00 delivery fee that will NOT be passed on to the borrower.

6. Minimum FICO for all borrowers of 620 is required.

7. Desktop Underwriting will dictate the maximum DTI allowed.

8. Transactions for 2nd homes or investment properties in which borrowers have greater than 4 financed properties are automatically allowed without an exception required from Secondary for FIXED rate loans. ARMS no longer allow this exception.

****Freddie Mac's guidelines are similar, if you would like details on that please e-mail me.*****

Here's the main things to look for regarding HARP loans (which many of you know)

1. Loan MUST be originated before May 31st, 2009
2. Fannie Mae or Freddie Mac MUST be the investor of the loans (until further notice)
3. Credit must be 620+
4. No Mortgage Delinquencies in the past 12 months
5. If the loan you're looking to refinance has been modified or a 2nd mortgage settled - you are NOT eligible to refinance.
6. NO Foreclosure in the past 7 years
7. Seasoning for Short Sales must be 4 years

Those are the main requirements, feel free to contact me with other questions

[Cat Damiano]

This is great information Erik, thank you so much for sharing your HARP knowledge with us.

[Maurice Bedard]

Hi Erik,

I would be very interested to see how and if this HARP 2 NOW does pan out because every other program has been a failure thus far. Please post your results here and follow up on this.

Thanks!

[Steve New Jersey]

Hi, I just found this site after searching for Harp 2 and I first want to say wow, this is an amazing site with so much information. Thank you for all that you do to provide all this information.

My question is I have a bankruptcy on my record and want to know if that will affect me being approved. I have met all the criteria, credit score is back to 700 etc... Feb 9th will be 3 years since the discharge of the bankruptcy and I know there are some guidlines involving bankruptcy. Any advice or help would be greatly appreciated.

[Cat Damiano]

HI Steve,


Welcome to the forum and thank you for joining............

I am sure that Erik will answer your question here, and you can also call him tomorrow and ask as well. Just keep in mind the three hour time difference from N.J. to CA.

[Steve New Jersey]

HI Steve,


Welcome to the forum and thank you for joining............

I am sure that Erik will answer your question here, and you can also call him tomorrow and ask as well. Just keep in mind the three hour time difference from N.J. to CA.

Thank you for your reply and this wonderful site..

[Erik Sandstrom]

I think I might have spoken to you already...I just posted a thread here which MIGHT be an alternative that people need to know about:
Cant refinance but have a significant amount of Assets? - Read

It talks about Asset based lending, how it works and what you need to qualify.

This is also a good read for people trying to purchase a new home with blemishes on their credit.

[Erik Sandstrom]

I'm still catching up after the flu this past week which took a major toll on me! Oddly enough my physical was a week before this and my doctor asked me "So I see you haven't had a flu shot in the past 3 years, did you want to get one now?" Sure enough 2 days after I said no... it get's me! That will be the last time I say no to that question!

[Steve New Jersey]

I think I might have spoken to you already...I just posted a thread here which MIGHT be an alternative that people need to know about:
Cant refinance but have a significant amount of Assets? - Read

It talks about Asset based lending, how it works and what you need to qualify.

This is also a good read for people trying to purchase a new home with blemishes on their credit.

Thanks for your reply, but I am only questioning the guidelines for refinancing with a bankruptcy. I have never been late my credit score is good, if I get a good appraisal I should be at 80 percent LTV as well. So, my question really goes to the rules for a bankruptcy. When I inquired last year I thought they told me it was 3 years from discharge. I will be 3 years from discharge on Feb. 9th so before I go applying anywhere and having my credit run I wanted to double check that with someone who might actually be able to tell me the truth.. Thanks for your help...

[Erik Sandstrom]

When Desktop Underwriting for Fannie Mae is updated I will let you know! Hopefully we will get the exact guidelines in less than a month. As of right now it won't allow financing to borrowers with BK's.

[Steve New Jersey]

When Desktop Underwriting for Fannie Mae is updated I will let you know! Hopefully we will get the exact guidelines in less than a month. As of right now it won't allow financing to borrowers with BK's.

Thank you for your reply. I have been meeting to get to this site since Friday with my awesome news. On Friday I successfully qualified for the Harp 2 program. My LTV is 105 percent bankruptcy is 3 years ago, my credit score is 680 and my wife is 640. This was done with Bank Of America, so if they tell you there is a long wait ask again. I went into my local branch who gave me the phone number to the mortgage specialist who was able to take my application. The rate is a little higher than what the rates are out there, but considering my circumstances I needed this loan to be done. I think my credit score is what bumped the rate a little higher not the bankruptcy. I ended up with a 4.625 rate which is saving me close to 500 a month.

BOA told me because of the bankruptcy they wouldn't be able to do a conventional loan till 5 years from discharge date although other banks have told me 4. Conventional loans however would have a problem with the ltv at 105 percent which is where harp came in. Anyway, It has been a long journey to this point having been denied twice modifications but it looks like I am on the right path now...

[arizonahome]

Erik-
I think the information you give on this site is invaluable and you are very knowledgeable. BUT, you fail to distinguish between Harp 2.0 refinance guidelines same servicer, and open access. Although I think we would all like to kick out our current services who are big banks, the more lenient underwriting guidelines for Freddie Mac (no DTI requirements, no credit score minimums, etc) for same servicer make some homeowners only option that of same servicer. Please speak to both, so those with questions about bankruptcy, DTI issues, etc can get a good answer on which path to pursue.... Thanks!

[Erik Sandstrom]

You're absolutely correct in distinguishing the Freddie Mac "Same Servicer" and Open Access guidelines, Same servicer guidelines are more lenient and seems to allow financing to homeowners with BK, credit issues...etc. This I just learned of today as a matter of fact on the guidelines which were released recently.

It does not however allow certain programs to borrowers under the "Same Servicer" program under certain scenario's like BK. Under Open Access you can but has more of a conventional loan qualification procedure.

I'm also being told with the new Fannie Mae Desktop Underwriting (DU) and Open Access guidelines that an appraisal will be required if LTV is above 125% HOPING THAT's not the case.

[Erik Sandstrom]

Congratulations, that's very exciting news Steve I bet you can't wait for that loan to close! And yes under HARP 1 & 2 for lenders outside of your own it's a 4 year seasoning requirement from the discharge of the bankruptcy.

I'm glad they're opening up financing to borrowers like you, it's obviously in there best interest to keep you as a client rather than foreclose on the property. Sorry to hear about the modification nightmare but the stress is over now! It's a smooth process from here compared to what you have been through, I'm sure of that!

[saigafreak]

Any information as to titling? If I was the only name on the title for the original mortgage and I got married, can we still do HARP using combined income and co-borrowing?

[Erik Sandstrom]

We can absolutely add a co-borrower to the loan, their liabilities would also come into play and would have to meet the same DTI requirements.

[jasonhoang]

Eric !
Thanks for answers all of my questions regarding to my HARP 2 questions via the phone today.
You are my hero. It's great to have an expert like you to help us out.
Once again, thanks

Jason Hoang

[Cat Damiano]

Hi Jason,

Welcome to the forum and thank you for joining..........

I am so happy that Erik was able to help answer the questions you have about the HARP refinance, he is quite knowledgeable of the ins and outs of the program.

Are you in the process of trying to achieve the refinance under HARP?

[futureman]

Hello Erik,

Since November I have been searching for a Lender to offer Harp 2.0, I understand after the DU is updated (what ever that is) in March I should find lenders that can process Harp 2.0

Good news on my end is our LTV ratio is 124% WE owe 171,000 and Zillow says our house is worth 144,000.
We took the refi in 2007
We have never been late
We have steady income
We have a excellent FICA score as of today 2/24/12 (knock on wood)

Thank God we have a President that cares.

[Cat Damiano]

Hi futureman,


Welcome to the forum and thank you for joining..........

If you want to crunch the numbers for the HARP refi, you can contact Erik directly to compare interest rates with what you are being offered through the lender.

He can be reached here;

Erik Sandstrom
Direct: (619)379-8999
erik.sandstrom@wjbradley.com

[Erik Sandstrom]

Thank you so much Jason for saying that, people like you are the reason I love doing what I do.

[Erik Sandstrom]

Hello Erik,

Since November I have been searching for a Lender to offer Harp 2.0, I understand after the DU is updated (what ever that is) in March I should find lenders that can process Harp 2.0

Good news on my end is our LTV ratio is 124% WE owe 171,000 and Zillow says our house is worth 144,000.
We took the refi in 2007
We have never been late
We have steady income
We have a excellent FICA score as of today 2/24/12 (knock on wood)

Thank God we have a President that cares.

Futureman,

Hope all is well, if you're at 124% I would try running the DU right now to see what the results are. If it shows approve/eligible it's time to hit the ground running. Cross your fingers and you might even get an appraisal waiver!

[jestom]

Hi,
I just join this forum few days ago and first of all i would like to thank you all for all the useful info you guys provide on this site.
I have a question regarding HARP in NY state. Do any of you know where can i find company license for NY state that provide help with this program?
We've purchased a home for 430K in June 2007 using Countrywide. Mortgage was transferred to BoA couple years later, which sold our mortgage to Green Tree Servicing last year.
The current value of the house is 354K (by zillow) and we still own 391K on it.
We are on time with our payments. Our Credit score is around 700.
When i called GTS in Nov/Dec asking for HARP they told me that they are not licensed in NY but they may be in March 2012. I called them 4 days ago and spoke to their agent and have been told that they don't expect to be have HARP in NY and the only option for me would be to refinance with different company.
Do you know where can i find company that would help me refinance with HARP in NY state?
Any advise i would greatly appreciate.

[jestom]

Hi guys, me again.
this was unbelievable. Eric Sandstrom just called me and he not only answered all my questions but also referred me a person who can help me with HARP in NY.
Eric, thank you very, very much.

[arlensc]

I have been waiting and watching HARP 2 for 6 months. I have a LTV ratio of 145, thank you Michigan economy. Recently I contacted 7 different banks. They were quick to say they do harp 2 loans and all expressed a release date for their company this week. Unfortunatly, every single one has made up their own guidlines for HARP 2 and "could not help me". Most have their own self imposed LTV cutoff, they admitted, "we are only processing 135 LTV and lower". Some said I am required to have appraisal. Some admittedly said they dont have a clue and to check back in a few weeks. Some rfused to take on any other banks loan.

Very frustrating. Given HARP 2 was created for 125 and above LTV, how can they restrict the LTV cutoff. SOunds almost criminal to me. I only found one bank who gave me a quote, yet there quote was 1.5% higher then base and they limited me to a 30 year.

I have never missed a payment and my credit score is 800. Any words of wisdom out there?

Arlen

[peggyinfl]

My mortgage was sold by Chase to Seterus a year ago. I have called Quicken Loans who told me I qualify but they have a LTV of 125 and would need an apprasil and Im way underwater than that. I call Chase they said harp 2 wasnt out yet, Wells fargo (only their own customers) citimortgage ( only their own customers) and a few local banks which will not be ready till mid April. Seterus is a servicer only and are referring customers to quicken loans. Never been late, credit scores in 800's. So how is this Harp going to help?

[Cat Damiano]

Hi Peggy,


If you have not already done so you can try contacting Erik directly. He can go over your information with you and let you know if HARP would benefit you.

He can be reached here;

Erik Sandstrom
Direct: (619)379-8999
erik.sandstrom@wjbradley.com

[Erik Sandstrom]

Jetsom you're very welcome, and Arlen I sincerely apologize about the problems you're going through. I seem to have an advantage above many lenders from what I've been hearing! Everything you mention on your post sounds like a fantastic candidate for HARP to me.

[noclue]

Having the same problems as others with HARP2 and LTV's.

1st Mortgage: $291,000 loan Serviced by GreenTree, and owned by Freddie Mac.
2nd HELOC : $29,000 loan from Chase Bank (attached to 1st Mortgage)
House Value: $170,000 (zilllow / cyberhome) Palmsprings, California. Nice neighborhood. Homes go for $100,000 to $300,000 on our street and nearby streets.

2nd Mortgage: 200,000 loan Wells Fargo (rental)
House Value: $130,000 (zilllow / cyberhome)

My situation
1st mortgage: As of today, April 2012, I have never been late. The loan rate is rate of 6.1% and I’m only paying the interest. The option to pay interest only stops in 2014.
2nd Heloc: As of today, April 2012, I have never been late. The loan is an interest only variable rate for the life of the loan.

2nd Mortgage: As of today, March 2012, I have never been late. The loan rate is rate of 5.75% Paying the interest and principle.

I was under the impression that the Harp2 program did away with LTV caps. I tried to contact GreenTree about taking advantage of the Harp2 program but they are only accepting LTV's up to 125%. I have also contacted BofA and a few other banks but I got the same response.

With a 1st loan set to reset adding another $350-$400 out of pocket with a LTV of around 170%, a Heloc that could go up at any time adding $100 or more per month with a (cul.) LTV around 188%, and a year before my loan resets my son will be going off to college. Even with potential scholarships it will be an added expense.

I'm not sure if I should keep making payments or if there any other options out there.

As you can see in the near future I could be in some trouble.


Any Advise..
Thanks

[saigafreak]

Erik,

Thanks for the reply. I was wondering if one of my lenders was not accurate when she said that my loan was not eligible for HARP because the originating lender was not Wells Fargo but was later sold to Wells Fargo (this is a Freddie backed loan). She said that if it were Fannie it would be easier but it's not so it's not possible. Does HARP 2.0 change things from this perspective? Thanks again!

[themoneypit]

Refi via Harp after ch 13 discharge- Eric thanks for your contributions to this forum. Im about to receive discharge papers any day now. I would like to refinance out of a 6.5% 30 year fixed into a 15yr fixed. Property shows that its now a Freddie Mac loan. Its serviced by Citimortgage who refuses to allow me to speak to their Harp dept without a letter from attorney or actual discharge paper in hand. Fico score probably around 640-680 my best guess. There was a 2nd mortgage that was declared unsecured debt and stripped in the Ch 13 bankruptcy and will shortly be recorded as such on the title at the county level. What are my options if any? the loan balance is pretty small, $58650, appraisal probably would now put property at buest guess 80,000 approx(ive done alot of repairs and renovation) I make around 65,000 a year and also am a shareholder in a small C-corp with good cash flow. Any ideas? Sure would be nice to take advantage of low rates via harp or any other kind of conventional loan.


Thanks in advance

J

[davemcsjr]

Like peggyinfl, we are Seterus customers who have ben referred to Quicken. I called and gave them the basics..a week ago..they called back tonight and said "that program" (HARP2?) isnt available in Massachusetts and 5 other states yet? and they have no idea when it will be opened up to us. WTH? Has anyone else run across this or are we being fed a line by yet another mortgage company?

[davemcsjr]

Update:
ONE..Was told by my first Quicken loan rep that Seterus is working with Quicken Loans to refi a LOT of their porfolio and get these loans off their books.
TWO: Seterus as a debt collector does NOT report my payments to any credit bureau. As such my biggest and most up to date debt payment history isnt factored into my credit rating?!!???!?!? WTH? I guarantee thats why my rating took a hit once Seterus took over!

[boricua65]

Update:
Seterus as a debt collector does NOT report my payments to any credit bureau. As such my biggest and most up to date debt payment history isnt factored into my credit rating?!!???!?!? WTH? I guarantee thats why my rating took a hit once Seterus took over!

False. I too have them (Seterus) but they DO report to the credit bureau. When I went to myfico.com and got my score, it showed in both Equifax and TransUnion Seterus as a trade line.

[davemcsjr]

False. I too have them (Seterus) but they DO report to the credit bureau. When I went to myfico.com and got my score, it showed in both Equifax and TransUnion Seterus as a trade line.

Ah...but do you live in the Commonwealth of Mass? This iseems to be a Mass only loophole.

[czukidog]

My HARP 2.0 application was denied because I had a short sale in Dec. 2009. I met all other criteria, but SunTrust said the short sale affected my credit, though my FICO is 700. It's Fannie Mae backed and SunTrust is the "same servicer". I would like to appeal their decision. Can anyone direct me to online documents that spell out how these loans can be processed despite foreclosure or bankruptcy, and how the same servicer can process them manually if they choose? Thanks

[Erik Sandstrom]

Hi Czukidog,
I'm not familiar with the same servicer guidelines as I don't offer that level and I have heard they are more lenient when a borrower has a short sale, you would want to start with speaking to a loan officer with SunTrust.

My short sale seasoning period for HARP is 4 years and no more than 1x30 day late on any mortgage in the past 12 months. I do have some good news for you! The HARP program has been extended until April of 2014, that would mean that at December of 2013 you will have met the 4 year requirement and should be able to take advantage at that time.

[lolodl]

Anyone have any trouble with Fannie Mae's desktop underwriting?

I am in the process of trying to refinance under the HARP guidelines. When you use the Fannie Mae look up tool, it comes back positive that Fannie Mae owns the loan. However through Desktop Underwriting, it gets kicked back.

So frustrating.

[Cat Damiano]

lolodl,


Are you trying to refi the property in N.J. that is in default, or is this a different one?

[lolodl]

Hi Cat,

This one is in Florida, I cant understand why the lookup tool say's yes but its being rejected through the Desktop Underwriting.