HARP 2.0 is Here!

Published on October 11, 2010 by Smith Marketing

By: Betty Smith

Earlier this year, Fannie Mae (FNMA) and Freddie Mac announced that they would offer new refinancing opportunities for homeowners who are underwater on conventional mortgage programs guaranteed by them.

We are pleased to announce that Fannie Mae and Freddie Mac have now (effective March 18) updated their Automated Underwriting Systems to handle the new HARP 2.0 initiatives. This process helps lenders to ensure that the borrower’s loan is eligible for refinance and determines any reduced documentation.

The most common reduction in documentation that we are anticipating is an appraisal waiver. If eligible, the lender would not require an appraisal, reducing the associated time, cost and extra underwriting.

Since the program is aimed at helping underwater borrowers, we anticipate the appraisal waiver on many of these loans.  Even in cases where an appraisal is required, the loan-to-value ratio will not be an issue. (more…)