The administration will be implementing a change to the HARP program this morning.
The attached press release details the changes to the existing HARP program.
· LTV requirements will be waived for borrowers looking to refinance FNMA/FHLMC loans
· The loan-level fee structure will be altered
· Loans must have been sold to FNMA/FHLMC before May 2009 to be eligible
· Existing HARP loans are not eligible unless they were originated between March-May 2009
Currently, the HARP program allows borrowers to refinance with LTVs of up to 125% – as long as they are current, and are employed.
This program will likely begin by December 1, although capacity limits may result in a delay for some investors.