President Obama for the week of October 24, 2011 will be promoting new rules to help struggling homeowners refinance and improve the terms of their existing mortgages
/EINPresswire.com/ Scottsdale, AZ — Dean Wegner, leading consumer and housing expert shares his ideas on what may be expected about President Obama’s changes to enhance the HARP program
“Eliminating the need for an appraisal and being able to refinance no matter how far upside down you are could be solution we have been waiting for.” states Dean Wegner. This information is gladly accepted at the Scottsdale based office for the veteran Mortgage Originator for over 18 years.
“There are a lot of good people that did everything right, 20% down, good credit with a good job that can not refinance because their so upside down on their home, frankly the 125% ceiling was a joke for most people”
FHFA Acting Director Edward J. DeMarco had this to say about the announcements. “Our goal in pursuing these changes is to create refinancing opportunities for these borrowers” in a Press Release dated October 24th, 2011 named: FHFA, Fannie Mae and Freddie Mac Announce HARP Changes to Reach More Borrowers
The Wall Street Journal describes the new housing rules:
The overhaul will, among other things, let borrowers refinance regardless of how far their homes have fallen in value, eliminating previous limit. That could open up refinancing to legions of borrowers in Nevada, Arizona, Florida, California and elsewhere who are paying high interest rates and are deeply “underwater,” owing more than their houses are worth. ..,
The plan will streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as homeowners are current on their mortgage payments, according to administration officials and an official at the Federal Housing Finance Agency. Fannie and Freddie have also agreed to waive some fees that made refinancing less attractive for some.
It expands the Home Affordable Refinance Program, which had been limited to borrowers whose mortgages were no greater than 125 percent of the value of their homes.
Dean Wegner explains, to qualify, “Borrowers must be on-time on their current loan for the last 6 months, and only one 30 day late in the last 12 months, the program applies to loans owned or guaranteed by Fannie Mae or Freddie Mac only.
The new rules are the result of executive orders, meaning Obama does not require the approval of Congress. Edward J. DeMarco, acting director of the Federal Housing Finance Agency, said there are many homeowners who are eligible to refinance under the Home Affordable Refinance Program (HARP).
“Our goal in pursuing these changes is to create refinancing opportunities for these borrowers, while reducing risk for (federal mortgage lenders) Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets,” DeMarco said. DeMarco’s office cited the following changes to the HARP program:
-Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;
-Removing the current 125 percent LTV (lending-to-value) ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;
-Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;
-Eliminating the need for a new property appraisal where there is a reliable AVM(automated valuation model) estimate provided by the Enterprises; and
-Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009
As stated in the Press Release, Homeowners Helped Since Program Inception:
As of August 31, 2011, nearly 894,000 borrowers had refinanced through HARP. HARP is unique in that it is the only refinance program that enables borrowers who owe more than their home is worth to take advantage of low interest rates and other refinancing benefit.
Borrower Eligibility
Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to:
FannieMae or calling 800-7FANNIE (8 am to 8 pm ET)or, FreddieMac or 800-FREDDIE (8 am to 8 pm ET). The program will continue to be available for loans with LTVs above 80 percent. Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months. Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances
About Dean Wegner:
Consumer Finance Expert Dean Wegner is a leader in consumer economics and housing with over 17 years of experience. He has developed the reputation of someone who knows the answers to tough questions. Dean is a member of over 25 financial organizations and a Certified Consumer Credit Counselor. He has spoken to over 3,000 people facing foreclosure and addressed the media on this topic over 500 times, including cover stories in The USA Today and appearing on CNBC’s “On The Money”. Women’s Entertainment Network (WeTV) features Dean as the Financial Guru in their hit reality show “Downsized” currently in season 2. Dean is also an accomplished author and his recent release “Life After Foreclosure” is available in book stores nationwide. Dean owns a real estate school and wrote the 255-page guidebook, Arizona Real Estate Sales Exam. He also shares his expertise as a business coach for four years with The CORE Training, Inc. Dean lives in Arizona and enjoys spending time with his three wonderful daughters
Dean Wegner
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