New Updates to GSE Refinance Programs to be Released November 15th.

The Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac have announced enhancements to the Home Affordable Refinance Program (HARP) that are intended to make it easier for lenders to refinance the mortgages of eligible borrowers. Guidelines for Fannie Mae including implementation dates and details, will be available on November 15, 2011. This is great news for those who have tried to refinance and have not been able to due to low appraisals and other issues. This could be an important step in keeping homeowners who are underwater in their homes by making payments more affordable and sustainable. In addition, to quote FHFA, the regulator for Fannie and Freddie, "An important element of these changes is the encouragement, through elimination of certain risk-based fees, for borrowers to utilize HARP to refinance into shorter-term mortgages. Borrowers who owe more on their house than the house is worth will be able to reduce the balance owed much faster if they take advantage of today’s low interest rates by shortening the term of their mortgage." Stay tuned as rates of implementation of this program will vary from lender to lender. Here is the link to the FHFA release.

Refinancing with Mortgage Insurance and Lost Equity

In 2009 the Obama administration worked with Fannie Mae and Freddie Mac to create a program called HARP - Home Affordable Refinance Program. The Fannie Mae refinance program goes by two names: Refi Plus or DU Refi Plus program. It allows the refinance of a 1st mortgage up to 105% of the appraised value of the property. Second Mortgages must be subordinated to the new loan. The Freddie Mac program is known as the Relief Refinance Mortgage. It has a few small differences but is basically the same as Fannie's program.

The problem over the last few years is that loans originated with private or lender paid Mortgage Insurance had not been eligible to be refinanced under this program so alot of homeowners were left out. Now, finally the lenders and the Mortgage Insurance companies are getting on the same page. Now not all lenders and not all MI companies are offering this program but there are options out there for those who missed the first round of great rates because they had Mortgage Insurance to take advantage of lower rates. Please feel free to contact me if you are in this situation and are having difficulty refinancing. I'm always happy to help point you in the right direction.