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So does "pool mortgage insurance" disqualify me for HARP or not

After months of waiting on my mortgage servicer to get their platform cleared to offer harp 2.0, today the 23rd of April is D-Day, and of course they throw another issue on the table. B/C my load didn't require LPMI, PMI or MI my mortgage was insured with a pool of other mortgagess and sold as a package.Some people say is doesn't matter and others do. What's the real deal here? If I meet all the other HARP requirements will my loan go through or will it get turned down at the last stage as I've read happened to others.thanks for the responses in advance.

by TODAYS_987_847 from Miami, Florida. Apr 23rd 2012 Reply


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

OK... so here's your first mistake.. You're dealing with your current servicer... to answer your question, all mortgages are blocked and sold off.. They are all "Pooled" so what your current servicer is saying makes no sense.. to qualify for HARP 2.0, your loan has to be owned by Freddie / Fannie, must have been initiated prior to June 2009, and no 30 day late payments in the last 6 months, no more than 1 in the last 12. Lender overlays will require good credit scores, good debt to income ratios, and some will limit the loan to value... Most lenders that are offering HARP 2.0 loans prefer no MI, either up front, lender paid, or monthly... however if you have any type of mortgage insurance, it will not disqualify you... it's just some MI companies are accepted, and some are not.. The best advice I can give you is to contact a LOCAL mortgage broker, not your current mortgage company, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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

Apr 23rd 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,960 contributions

I've been calling HARP 2.0, HARP 2. "NO" for a lot of people because of all the misunderstanding and confusion over the small print in the program. There is a small possibility that some people may NOT be able to refinance under HARP - no matter how how well they THINK they qualify. The only way to know 100% is to apply and try. With that said, while most people feel their existing servicer is the best place to work with for your refinance, when in reality, it is almost without fail the WORST place to work with! Talk to a local non-bank licensed loan officer. Have them run the application. YES, you may get turned down in the end (especially if it is Freddie Mac), but try. In MN or WI, visit www.HARP-Refinance-MN.com

Apr 24th 2012
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Gregg Martin (gregg@greggmartin.com)
#67 ranked lender in Florida - 3 contributions

Their are several factors we need to know. The first question is your loan Fannie or Freddie owned? Are you current on your payments? It does not matter if your loan is sold in a pool of other loans and if it didn't require PMI then that is not an issue either. It is important to remember that lenders do have the option to add additional conditions to the HARP 2.0 Program. Such as minimum credit scores, etc. I would be happy to speak with you about this. I hope this helps! I can be reached at 352-339-5012

Apr 23rd 2012
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You're right. The only bank that has said I won't qualify due to the mortgage being pooled with other mortgages is the servicer - won't say their name but lets just say it rhymes with M&P Bank. Every other direct lender I've spoken with said that shouldn't make a difference, but my servicer was so confident on 3 seperate calls, it made me question everyone else.I certainly will reach out to a local lender. I'll also give you a buzz tomorrow gregg. I do meet all the program qualifications - it's the optional requirements that the individual lenders tend to layer on top that might be a problem if any.

Apr 23rd 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

The likely answer is that if your current loan does not have PMI, lender paid or otherwise, then you will not be required to have MI on the new loan. Work with a local Mortgage Banker/Broker. They will be able to tell you fairly easy if your current loan has MI on it. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Apr 23rd 2012
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Melvin List (melvinlist)
#144 ranked lender in Florida - 124 contributions

I would contact a mortgage broker that has many lenders to shop your loan. A lot of lenders and placing overlays on HARP 2.0 but many do not.I only Lend in Florida!

Apr 25th 2012
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