Harp 3.0 Doesn't Look Good.....

ttby4444

LoanSafe Member
Jul 15, 2009
10
0
1
If already posted I apologize for the repost......I could be wrong but Mel Watt's speach recently basically squashes all hopes of an expanded HARP program. Read below.....

http://www.fhfa.gov/Media/PublicAffairs/Pages/Watt-Brookings-Keynote-5132014.aspx

We have also received a number of inquiries about changing the eligibility requirements for the Home Affordable Refinance Program (HARP). Because the number of borrowers we could add by extending the eligibility date or by changing performance requirements is relatively small, we have decided not to alter HARP eligibility parameters. FHFA is, however, working to retarget our HARP outreach efforts to the approximately 750,000 borrowers who already qualify and would financially benefit from refinancing. We are exploring outreach efforts designed to gain the trust of these “in-the-money” borrowers so they act in their own financial interest.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
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Jan 14, 2011
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This is definitely what I didn't want to see. I have been advocating along with many of our members in expanding this program to help more borrowers.
 

mickandvick

LoanSafe Member
Apr 18, 2012
62
4
8
This is such garbage for those who have a conventional mortgage and are severely underwater and can't refinance! I like many others will recieve no help from servicer's like B of A. The National Mortgage Settlement gave the banks the loop hole they needed so as to not help those with conventional loans. Mel Watt, another useless politician! Obama, another broken promise to help responsible homeowners!
 

Johnny S

LoanSafe Member
Sep 8, 2012
13
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1
Lake County, IL
The National Mortgage Settlement also gave the banks the loop hole to screw over people like me with HIGH interest rates that originally refi'd with Chase and then Chase sold off the note in securities over seas to Duetche Bank but Chase still services the note. All I want is a normal mortgage and not this 9.5% piece of garbage where I just light money on fire every month. Loving the American Dream!

Chase Loan Officer: "Don't worry, this high rate is only temporary and you can refi in 2 years when your credit is in better shape." This was 10 years ago... 800 credit score and I can't even get a normal person's rate, and I can't even sue them... I've paid more in interest in the past 10 years than my house is even worth now! $165K house (original loan amount, now worth $125K) costing over a half million over the life of the loan, just awesome.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
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Jan 14, 2011
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There has been a recent press release that provides SOME hope but seems to focus more on modifications than HARP 3.0. I'm still holding high hopes that they'll act on their word of helping people like yourself Johnny S & mickandvick. You deserve the help more than people who are failing to make their mortgage payments in my eyes. You've shown yourself as a responsible borrower and should be rewarded for that.

Here is an article about the recent press release:
Speaking Thursday at the Making Home Affordable five-year anniversary summit, U.S. Treasury Secretary Jacob Lew announced several initiatives designed to spur the flailing housing market.

Lew identified three specific issues that are holding back housing in the United States and announced plans to address each of those issues.

Citing the lack of private capital in the market, the dearth of affordable rental options and the abundance of Americans who are facing foreclosure or are underwater on their mortgages, Lew announced three new plans:

  • The extension of the Making Home Affordable program until “at least December 31, 2016”
  • A plan to expand access to credit by working to revive the private-label mortgage-backed securities market
  • A new partnership between the Treasury and theDepartment of Housing and Urban Developmentto build new, affordable rental housing
Lew recognized the progress that the housing market has made in the wake of the crash but said that there is still more work to do.

“Families and neighborhoods across the country continue to recover from the financial crisis, and we must not lose our resolve to help them, even as the economy continues to expand,” said Secretary Lew.

“From day one, the Obama Administration has worked to provide relief to struggling homeowners and stabilize hard-hit communities. Today’s announcement continues that effort. These new actions will help provide more affordable options for renters, assist homeowners facing foreclosure or juggling bills to pay their mortgages and expand access to credit for prospective borrowers.”

Lew celebrated the success of the MHA program since its inception. “This innovative program has provided relief to homeowners across the country, including more than a million homeowners who have been able to permanently modify their mortgages through HAMP and save roughly $540 a month in mortgage payments," Lew said. “The Making Home Affordable program is not just helping families keep their homes, it is giving families peace of mind.”

But Lew said that there are many homeowners who are still in need of help. “We need to continue to be there for homeowners who are facing foreclosure, those who are struggling with increasing interest rates on their modified mortgages, and those whose homes are caught underwater,” he said. “The truth is, when you work hard, act responsibly, and play by the rules, you should not have to live in fear that you are going to lose your home.”

To that end, Lew said the administration will be extending the MHA program until at least the end of 2016. Previously, the program was set to terminate on December 31, 2015.

Lew also recognized the “millions of Americans with good credit who cannot get a mortgage,” due to the lack of private capital in the market. “We need to develop new solutions for credit-worthy families who want to buy a home but continue to get rejected by lenders,” Lew said.

“The fact is, we need to attract more private capital to the housing market, and that is why I have directed my team to bring investors and securitizers together in the months ahead so we can uncover new paths to increase private investment.”

Lew acknowledged the “meaningful steps” taken recently by the Federal Housing Finance Agency and the Federal Housing Administration to “improve lender confidence in making GSE and FHA backed loans," but said that the administration must do more “to make sure our markets are effectively serving potential homebuyers.”

Lew said that includes “fostering the development of a safe and sustainable private market for mortgage lending that can serve alongside government-supported options.” He said that the private label securities market has been “dormant since the financial crisis.”

Specifically, Lew said that the Treasury will be publishing a “request for comment,” in an effort to “help us better understand what we can do to encourage a well-functioning private securitization market.” Lew said the administration also plans to host a series of upcoming meetings with investors and securitizers to further explore ways to increase private lending.

Finally, Lew announced a new partnership between the Treasury and HUD to “create and preserve” quality rental housing by “reducing the interest rate for affordable multifamily apartment buildings.”

Lew said the administration will accomplish this by “supporting the FHA’s multifamily mortgage risk-sharing program, which helps drive construction and rehabilitation of rental housing.”

Lew called on Congress to permit Ginnie Mae to securitize FHA risk-sharing loans. “But until Congress takes action on new legislation, I am directing the Federal Financing Bank to use its existing authority to finance these FHA-insured mortgages,” Lew said.

“The new partnership between the Treasury Department and HUD will help create and preserve more decent rental housing by significantly reducing the interest rate for affordable multifamily apartment buildings compared to the cost of tax-exempt bonds under current market conditions,” the Treasury said in a statement.

Carol Galante, FHA Commissioner and HUD’s Assistant Secretary for Housing, celebrated the plan. “Families have been especially hard hit during the rental housing crisis. Demand is soaring and prices are climbing,” she said.

“To help the many hard-working families who cannot find affordable rental housing, we are partnering with the Treasury Department, to broaden our efforts to create and preserve safe, decent and affordable rental housing by allowing more Housing Finance Agencies access to the capital they need to build or maintain affordable multifamily apartment buildings.”

Lew also called on Congress to extend the Mortgage Forgiveness Debt Relief Act, “so struggling families that have lost their home to foreclosure or that have sold their home in a short sale in order to move into more affordable housing are not punished with a large tax bill.”

He also urged Congress to pass housing finance reform. “The work in the Senate Banking Committee was an important milestone on the road to reform, but lawmakers need to keep moving forward,” he said.

“We know we can create a better system that provides responsible Americans with mortgage credit while supporting affordable rentals for those who choose not to buy. We can create that system without putting taxpayers at undue risk, but we need Congress to act. Passing legislation is the only way we can achieve meaningful and sustainable housing finance reform.”

Content from: Housingwire/Ben Lane: Obama Administration Reveals Plan to Jump Start Housing
 

Johnny S

LoanSafe Member
Sep 8, 2012
13
0
1
Lake County, IL
I don't see a glimmer of hope.

People like me inject a lot of money into the banks and the last thing they want to do is help someone like me out because that reduces a large amount of cash flow and profit to them. Chase could easily consider my 6 figure interest payment over the past decade into factoring whether I'm worthy of a modification but they'd rather tell me we make enough to afford our over inflated mortgage and that our DTI is too low and that we're not worthy of any help which translates to please pay 9.5% or more (ARM with a minimum rate of 9.5%) every month until I can afford to put a $75K down payment down on my own house which isn't going to happen.

Sorry for the rant, I guess I'm just fed up. I see the people that over spent on their homes because they thought their $500K mortgage was really only going to be $750 a month for the life of the loan and then reality kicked in when the interest only period was up or their ARM shot up and they woke up and realized they couldn't afford $3K a month and even worse, those are the same people getting approved for modifications or HARP while people like me keep sinking our retirement savings into our messed up mortgages that we're trapped in and the banks just laugh at us. We spent within our means and we're the demographic paying a part of the price.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,100
181
63
San Diego, California
www.loansreduced.com
I can definitely understand what you're going through as I personally have a similar situation. Your rant is justified, believe me I've had plenty myself. Seeing people obtain a 2% loan that caps out at 4.5% with a modification and in some cases borrowers received a huge principal reduction makes me sick to my stomach. At the same time I can't keep a grudge and glad that some people are being helped.

It sounds like the property you live in now is the one that you want to stay in. If that wasn't the case I would consider all options. If you're able to short sell your home while being current (which is very difficult) you can get a new FHA loan immediately. If you have to go late in order for them to approve the short sale there is a 3 year waiting period. If you don't think you will recover in the next 3 years this is something to consider.

Worst case is just as you mentioned, put money towards your mortgage to get at least to 95% LTV and refinance via a conventional loan program (even if it has MI, it will drop off once you reach the 20% equity position).

You most likely already know this as I can tell you've done quite a bit of research but if you have any questions don't hesitate to ask.
 

Survivor_IN

LoanSafe Member
Jun 2, 2008
278
24
18
Johnny S

Wow.

Looks like you are being blackmailed over your credit score!

They must know your job depends on it. Do you have to send payments via certified mail and watch your credit report daily too? (others do) I worry about Servicer's "having and misusing personal information" with all these applications for assistance. Yes, it appears you are profitable "as is" and stable for them. No need. Next. Your income might support late fees and additional charges too. Even better. You meet the stress test!

I understand why you are so angry. It's not fair and banks have definitely limited assistance to as few as possible.