Confused Homeowner: I was denied a Harp 2 refinance from Citibank for apparently no reason. Here is the backstory: We bought our first home 8 years ago for $173,000 and had a 7 year arm and a 7% interest rate with PMI on it. We refinanced to get a better rate and take some cash out during the bubble and now have a 30 year fixed with a 6% interest rate and owe $207,000. We do not have a second and we don't pay any PMI. At the time of the refinance, we still had $80,000 in equity. Then the crash happened. We had our 3rd child in December and needed more space so we bought a bigger home and are renting out the previous one. We have only been reluctant landlords for 5 months. We have to supplement our rental payment with $250.00 per month. I have really excellent credit and my husband has good credit due to being from another country and not having a lot of credit history. Our combined score is excellent. I called Quicken Loans and they said "Freddie Mac places your home value at $148,000 so you have a LTV of 140% (roughly) and we won't do the loan. The officer told me that only Citibank would refinance us because that is our current servicer. I called Citibank and they very promptly, with no credit check or application said no. They placed the home value at $168,000 - based on what - I do not no. Which places our LTV at 123%. When asked why we could not do Harp she very quickly would talk over me and tell me I couldn't have Harp but I could do a Loan Motification. I told her I didn't want a loan mod I just wanted the Harp program. She said no again and when I asked why she just kept saying she didn't know why but the answer was no and I should stop asking her for details and start talking about the other options. I told her I wasn't interested in the other options and finally nailed her down into telling me that "Freddie Mac denied you - I don't know why and I could send you an application but the answer would still be no." Finally after many questions she said that Freddie Mac slowly releases new homes approved for the Harp 2 every two weeks or so and our home was not on the list yet but I could check back in a couple of weeks. Again, no other reason - nothing I could do to speed the process. She then heavily pushed for a loan mod instead. Which I told her we would have to get back to her on. My question is - is Citibank lying? Why is Freddie Mac denying the refi? How would she know without an application? And is Quicken lying? They are saying that my home is worth far less than Citibank and claiming that that number came from Fredie mac. How can I get the Harp 2 refi? It seems we are perfect candidates but I can't get anyone to offer it.