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HARP 3.0 Update

By Steven Roberts Updated on 10/17/2013

Harp 3.0The House presented the HARP revision in a bill “The Responsible Homeowner Refinancing Act of 2013”. Congress has not yet approved HARP 3. Obama advised congress to pass the bill this year during his public address in August. #MyRefi is Obama’s social media campaign to intrigue people towards demanding congress to broaden the HARP refinance program. Learn more at www.whitehouse.gov/refi.  Visual learner?
Click here > HARP 3.0 Infographic

Home Affordable Refinance Program 

The Home Affordable Refinance Program (HARP) is a government-insured refinance program, created in 2009 as a stimulus program to encourage economic recovery following the housing market collapse. The original program had intended to aid underwater homeowners and prevent loan default.

To address this issue, HARP allowed lenders to be more lenient and considerate of the borrower's loan-to-value ratio (LTV), benefiting over 1 million homeowners and maintaing economic stability.

In 2012, the HARP program was updated through revision, aka HARP 2.0. Loan-to-value requirements were discarded, as well as requirements regarding proof of income, proof of assets and a minimum credit score. HARP 2.0 refinances even eliminated the need for a home appraisal.

3rd Times A Charm

This is not the first HARP 3 bill proposed. The last bill denied was the Mendez-Boxer Responsible Homeowners Refinancing Act of 2012. HARP 3.0 will be approved this year, according to our Live Poll by mortgage professionals. Stay tuned for up to date progress.

What Is Holding HARP 3.0 Back?

  • Prioritization of more important bills.
  • 6 step process to receive enactment.
  • Lack of Republican support in congress.
  • Distaste for the bill by investors and banks.
  • Technical details as to funding and loan guarantee.
  • Defining the underwriting policy and eligibility requirements.

How Will HARP 3 Help Me?

  • Remove the June 1, 2009 eligibility cut-off date.
  • Allow more than one refinance through HARP.
  • Allow one late payment within the 6 months prior.
  • Decrease required borrower closing costs.
  • Ease or remove employment and income verification.
  • Increased loan limits will allow jumbo loan options

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About The Author:
Steven Roberts
Steven Roberts is an editor for Lender411. He specializes in mortgage and finance. Steven graduated from Cal State Long Beach. Contact him at Steven@Lender411com.

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