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RALPH RICHARD GUERTIN

UPDATE on HARP 2.0

Thursday, March 22, 2012 - Article by: RALPH RICHARD GUERTIN - Cross Country Mortgage - Message

Well HARP 2.0 is finally rolled out to the public, Freddie Mac went live on March 12 and Fannie Mae as of March 19th. Is it running they way the Government wrote it up???

That's the million dollar question and the answer is NO.

Big Banks are only doing the own loans and have added layers of risk that were not part of the Harp package. Rules and Guidelines seemed to be changing BY THE HOUR. Below are some bullet points worth mentioning as they hopefully try to iron out the details in favor of the millions currently UNDERWATER, and seemly nowhere to go:

oOriginally it was supposed to be just primary residence, but they are saying primary, second home, even investment properties could qualify...KEY word is (could) ....NOT many approvals coming from Fannie/Freddie's underwriting system
oUnlimited LTV (loan to value's) NOT TRUE
oNo DTI issue's(debt to income) basically it was put if you have shown you can pay your mortgage @ 6% then you can surely pay it @4%.. NOT TRUE ....is this happening NO not often enough, Fannie approvals are capping DTI's
oOnly review credit to see mortgage history, not really score driven..NOT TRUE
oMax LLPA's (loan level pricing adjustments) were set at .75 for loans over 20 yrs and zero for loans under NOT TRUE

HOPEFULLY THIS IS A WORK IN PROGRESS AND THE HARP 2.0 WILL SEEP ITS WAY THRU THE RED TAPE AND HELP AMERICAN'S AS IT WAS DESIGNED, BIG BANKS AND BIG NATIONAL MORTGAGE COMPANIES SEEM TO BE MAKING THEIR OWN RULES..MORE UPDATES TO COME AS WE LEARN MORE

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