Forgotten Your Password?

Need to Register?

Question Icon

HARP2.0 - open access, recourse loan

I started the process of a HARP2.0 refi with my local credit union and after they started it found the Freddie Mac guidelines weren't something they wanted to do business with and recommended I go to my original lender. I started the process again with my original lender, but they are jerking me around and definately not giving me the best rates. I'd like to try with other lenders (open access) but I know there are slightly different guidlines. Of particular concern to me (quoted from the Freddie Mac, Relief Refinance Mortgages - Open Access sheet under the General Eligibility Requirements) is the statement: If the mortgage being refinanced has recourse, indemnification, or other credit enhancements defined in Chapter B24 it is ineligible to be refinanced as a Relief Refinance Mortgage-Open Access.I have refinanced my original loan(s) into a single loan in May 2008, which I believe means it is a recourse loan and would make me ineligible for Open Access. The "Same Servicer" guidlines say that I am eligible with recourse. Does recourse in the phrase above mean something different or am I stuck with my original lender. We are close to closing but they keep jacking up the fees in the GFE, so much for the GF part! Time is of the essence, my lock is running out. by stephf_960_675 from Corona, California. Jul 28th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

I don't think the word "recourse" in B24 relates to whether the loan has recourse or not... since half the county has recourse loans and the other half has non-recourse loans, and Freddie / Fannie buy both..... Section B24 relates to certain loan products that had recourse, indemnification or other enhancements.. Some loans were originally funded and carried by a portfolio, and was not sold initially to Freddie.. Later..Maybe months or years, those loans are pooled together and one policy for the entire portfolio was issued.. this type of Pooled loans are ineligible for HARP, since you cannot pull one loan out of this pool and reinsure it for the new lender... My Community loans were Fannie loans issued at 100% LTV and no mortgage insurance.. These loans are also ineligible.. and most "Stated" loan products also are ineligible for HARP... If you want to know exactly if there are any enhancements, then call Freddie on Monday, they will tell you if your loan will qualify... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 28th 2012
1
0
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

Have a local lender help you out in this matter. Good Luck!

Jul 30th 2012
1
0
Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

http://www.teamperotti.com/Blog/Recourse-Loans-vs-Non-Recourse-Loan here is a good article to totally understand what recourse loans mean... linda and who is your lender? that can make a real big difference ...

Jul 28th 2012
0
0
Michael Tran (Babytyger)
#650 ranked lender in California - 5 contributions

Please call me to see what would be the best course!!!!949.229.1516

Jul 28th 2012
0
0

Thank you Linda. I'm familiar with the difference. The comment about all CA loans being non-recourse for 1-4 unit property is interesting...I'd want to verify the name/content of the law...seems odd that even a cash out refi would be non-recourse. Mine was not cash out, BTW.My lender is Citibank. I just spent all afternoon on the phone and could not get anyone to send me anything in writing that specifies either way as to whether my loan is recourse or non-recourse. The customer service agent I spoke with tried to verbally tell me that despite my refi it is non-recourse, but could not find anything in writing...just word of mouth. My philosophy is trust, but verify. Finally got a number for customer service at Freddie Mac, but they are closed until Monday. Another bank wanted me to simply apply to find out, but 1) I don't want to screw up my current loan with a credit hit before closing only to find out that bank#2 can't do it and 2) My first experience with the HARP program showed that just because I get initial approval doesn't mean that the loan will actually close.

Jul 28th 2012
0
0
Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

Stephf.. my email is yourloanpartnerforlife@live.com my phone is 602-330-1598 i have a place to send harps that do not have all of the bank overlays...

Jul 28th 2012
0
0
John Desmond (jdesmond)
#16 ranked lender in Louisiana - 20 contributions

I do not think you would be required to stay with Citibank, and you are correct in thinking there rates are higher than you could receive elsewhere. I would recommend John Robinson who works with Bank of England and specializes in HARP refinances. His phone number is 888-407-1592. He has 15 years experience and is very friendly. Best of Luck in resolving your Citi issues!

Jul 29th 2012
0
0
Blake Kleckner (BlakeK)
#387 ranked lender in California - 259 contributions

To start with, there are significantly fewer lenders doing Freddie HARP 2 (H2) loans than those doing Fannie, so your options are somewhat limited. I don't believe because you did a consolidated refinance transaction in May of 2008 that you cannot qualify for a H2 loan. You're not alone in the "being jerked around" category. Almost all of my clients who came to me from failed attempts to get H2 loans, experienced the same situation with the lenders they worked with. Quite frankly, most lenders are definitely not up to speed on this amazing loan program. Why, I can't possibly understand. On the positive side, we are. I have completed many H2 loans for my clients saving them $400 to $1,000 monthly, and they are all very happy campers! What was the original loan amount of your current loan, what do you think your home's FMV is, and what is your current interest rate and monthly payment? Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to walk you through the process. Regardless of what you have been quoted, I'm quite certain I can structure a better H2 loan for you. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 39 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Aug 2nd 2012
0
0
Subscribe to our news feed.