HARP Breathes New Life Into Refinances
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Re: appraisals; there are some very crappy appraisers out there, but the fault is the realtors that put the pressure on LO’s to get the required value and LO’s that pressured the appraisers. Realtors stated, “if you can’t get the value I will use someone else”. So we got unrealistic inflated values and with all the loan fraud with SISA loans here we are.
This is completely unrelated but hoping someone can help me. A long time ago, Frank and Brian posted a link to software that you could put on your desktop and you could basically cut and paste color charts, etc. There was a half of a sun on your desktop you clicked on. I lost this when I had some computer issues and want it back but can not find it again on the web. Does anyone know what I’m talking about and where I can find it again?
It’s called Jing Project!
The words and in what order in this case “Rehab your Home” also play a role in page placement.
HARP is good and sounds like it will be better once the lenders and DU/ LP can update their guidelines to reflect the changes. The one thing that they did not address that have kicked a few of my borrwers wanting to do the HARP refinance is the ” delivered to date “. In the one I just could not do they closed 5/15/2009 but is was not purchased / delivered to Fannie by 6/1/2009 – we could not do the HARP. Another refinanced under the Harp July of 2009 at 5.375% and would like to take advantage of the 4% or under 30 year fixed rates and cannot because of the delivery date restriction. If they truly want to help more borrowers/ homeowners CHANGE or eliminate the delivery date to Fannie and Freddie.
I would like to hear feedback on what percentage of HARP refis are dead because the second will not subordinate. Which is crazy but I hear happens quite often. New HARP 2.0 is not available to brokers yet. The new guidelines have no max LTV or CLTV,if you payment does not increase by more than20% the are no ratios. Great program but Ihope it doesn’t get killed by lender overlays
2 words – Go Giants
Boys I’m pulling for the 49ers. I am a Cardinals fans and I am tired of hearing about how the NFC West sucks and the NFC East is a gift from God to the media. Have you looked at our records? Have you looked at our coaches? It is 80′s throw back football, run first, D first, play action pass. I am sick of wide open passing and no defense. How great would it be to have the Ravens V 49ers with the two brothers coaching against each other in old school football.
That would be nice but, the Ravens go down this weekend. Go Patriots!!
The BofA scenario sounds all too familiar.
Had a VA borrower who was going through BofA for their loan to buy a BofA shortsale that they had actually been renting for 2 years. They were approved for their loan by BofA, and the shortsale was approved by BofA shortsale department, then 6 days before closing the house was foreclosed. Shortsale department and the foreclosure department never communicated. Borrower had been approved to buy the house at $209,000 and the underlying mortgage balances was $212,000. This was 2 years and 5 months ago. Within past few weeks, current owner of the house receives letters from BofA Insurance Servicing Department addressed to the original owner who was foreclosed saying that there is no homeowners insurance in place for the loan that was foreclosed more than 2 years ago! None of their departments seem to communicate.
Jeremiah Adams — I hear ya — I’m having the same issue though I did get one Fannie DU Refi Plus done at 105%. Freddie though is my issue. When I called the helpline, they said they are getting hundreds of calls from originators. Maybe, he said, it will be loosened up come March. Don’t hold your flippin’ breath. It’s their way of keeping the underwater people from refi’ing even though they “say” they are helping. What a joke!
As more and more homeowners are fighting banks against illegal foreclosures and challenging their ownership of the Notes Banks are claiming they owned, more evidence are comming to light through the court systems proving that these banks CAN NOT PROVE OWNERSHIP of the Notes they are claiming they owned. INDYMAC in KANG vs INDYMAC CORP Indymac refused to provide evidence to the court of their ownership of the Note they possess. Under testimony, Indymac Vice president told the court that though INDYMAC have possession of the Note, it DID NOT KNOW WHO OWNS IT. B of A, Wells, Chase, CITI can’t prove ownership either. In their cases, docs were recreated. Since these loans were securitized and sold to Investors shouldnt’ the Investors be the ones enforcing the Notes as the Rightfull owner in Due Course? Why are Banks and Servicers enforcing the Notes when they can not prove or provide evidence such as Trust Agreements to show their authority and Rights to enforce such Notes under their Agency Agreement..if one existis. Shouldn’t the Notes have been assigned to it’s rightfull owner each time it’s been sold? We all know this didn’t happen, and that explains why INDYMAC had possession of the Note but did not know WHO OWNED IT. If Banks and Servicers can not prove their authority to enforce the Note, then wouldn’t ALL ACTIONS taken by them to enforce or do ANYTHING to the Note be VOIDABLE OR FRAUDULENT?…SURE SOUNDS LIKE IT TO ME. It appears to me that modifying and refinancing a Fraudulent loan gives the banks a legitimate way to reclaim or re-attach a mortgage debt on a home that 1. does not belong to them, and 2. were already fully paid for by investors who wrote off the loss as bad debt…..
Theres a whole lot of covering up here seems like.
What, no way man!!! Their has to be someone in charge that’s all their is to it guy’s, I refuse to believe the servicing companies whom have had the power to take homes from people have been backed by the wonderful people at the banks in charge…. and then releasing them over to their crownie chosen realtors and vendor companies to sale and charge them all kinds of make believe costs for their pockets, No way man i refuse to believe, after all Im an optimistic person/Realtor.
So I’m curious if 90% of realtors and LO’s aren’t using blogs are the 10% that are taking up more than 10% of the business? I’ve been going to many of the social media seminars and it seems we always get shown a copule people who have had success but most of the people who are doing the talking either don’t even sell realestate or mortgages, or they’ve made a big name for themselves in the social media relm but have nearly a 0 transfer rate. For example when I asked Dale Chumbly at the end of his 365 days of posting 365 things to do in Vancouver he said he’d had not once sale because of it, yet everyone wants him to speak because he’s made a big name for himself, but that’s all he’s really done. Rather than giving us stats on how many people are or aren’t on social media why don’t we get some stats of actual conversion numbers of some of these people who are doing social media and how many actual closed transactions they are getting because of it?
I have several horror stories. Have been working on several files. First, a loan modification. Just got the 3 month trial payment with no guarantee of a permanent loan mod. Have been working on the file since 2008. Second file, working on loan mod since 2008 for same person as first file, using same paperwork and still has not been approved.
Third file, trying to get an investment property sold, the title is clouded by 5 personal judgments against seller. All judgments have been settled or loans have been modified. Been trying to get the title cleared since October, the bank legal department will not respond to me or the attorney. Property is now scheduled for sheriff sale.
ALL THESE FILES ARE WITH CHASE.
I have not been able to get audio on your webcasts for at least three or four weeks. I am about to unsubscribe. I get audio on others so it must be with your side.
Can’t play the video.
Cant play the video. Doesn’t load
I STILL cannot get the video. While the comments are interesting, I still miss some of the day’s offerings by the guys. What’s up with this? Nothing changed on my lap top, what changed on your end?
Here is my horror story; Fannie owned property, 3 days before closing. We get updated title and the issue had becoime that the previous owner filed b/k the day before Fannie was to take ownership. I do some research on my end and contact a b/k attorney that I have a business relationship with. Come to find out, he is repsenting the previous owner in the b/k, and the previous owner has no intention on keeping the home, the b/k was for financial protection. The b/k attorney offers all the proper documentation to release the home so the new buyers can close. Fannie would not accept the exact same documents they are going to receive by having their own attorney do the same leg work I already accomplised, and cancels the contract siting the home is unsalable due to title issues.
Cant load video?!?
I’ve noticed that sometimes the video won’t load properly if you go to it direct from the email link. But if you click the Play button from this site it works.
Working on a file with Wells Fargo, WF loan officer took over 6 months to get the purchsae loan approved, now loan on property (also with Wells Fargo) was sent to foreclosure attorney. When file finally got approved it was $4,500 short to close. Seller would not pay, due to being in foreclosure and didn’t care. Could not get Wells Fargo Home Mortgage to short sale the payoff by this little amount without going through the entire short sale process, a several month process. The two Wells Fargo departments would not even discuss with each other…….
I’m a Realtor and would luv to take advantage of the new Harp program. I am being told bymy lenders that since I have PMI I can not do anything until the banks figure out their overlays. Don’t most loans greater than 80% LTV have PMI? I don’t get it….any help.
Dwayne: If you have PMI now you will have PMI after the HARP refi. The program does not really start until march though as DU does not recognize the new changes yet. Pricing hits will be lower for ltv’s over 105% and appraisal will nto be required in general. You could be 200% LTV and still get the refi.
When DU & LP updated in September they must have put a little bug in the system to decline Harp loans.I have 8 Freddie loans that are over 700 scores have tons of assets the only catch their LTV or CLTV is over 100%.LP gives me a caution which nobody will accept.I have a couple of Fannie that its the same deal.Anyone have any suggestions?
Jeremiah,
I have been having same issue. Shorten up the terms! They tweeked the system for lower terms. That is why they also put better pricing incentives for 20 years and under. Start at 25 years and then go 20. Shorter terms equal quicker amortization. Let me know how it works.
Jim Barry
FNMA and Freddie will not accept the lower amort. anymore…ck with your U/W to confirm my comment.
JA:
Check you front page on you in put and see if the CDP,Ln Amt, CLTV,LTV and appraised/sale price are correct. If the app and SP is diff. it won’t work.
If that don’t work it is one of your back screens that are glitched.
I think you guys have been hitting the Jameson a bit hard today… 49ers?? Not A Chance! Go BLUE!!!
My understanding is that there will still be the issue of second trusts to contend with for HARP refis. What will it take to get these subordinate note holders to agree to stay behind a HARPed first trust with a lower rate? (not being facetious here)
Lower rate underwater loans, though not perfect, may create a PAYMENT that will reduce likelihood of default.
RE: FHA MIP issue from last week…does anybody know what the date stamp for FHA case numbers will be when the 10bps MIP increase takes effect?
Harp should have made seconds mandatory and automatic. In foreclosure the second would have no standing if short funds. It is to the lender’s benefit to get lower payments for the borrower on the first. I have one now moving a borrower from an ARM to a fixed product, DU says an appraisal is not needed, but the borrower must pay the subordinate lender $200 and wait 30 days for approval, AND he MAY still need an appraisal if the second mortgage holder wants it. This adds up to delays that most likely will cost the borrower his rate lock and/or funds to relock. Nonsense.
Ok – what if loan taken out was conventional (Wachovia then Wells Fargo) standard 30 yr fixed 22% down and loan is not currently coming up owned by fannie or freddie ? !! Borrower does not qualify for Modification thru WF – since the ratio is UNDER 31% – well wouldn’t the ratio have been under 31% at time of origination ? !! Unknown private investor now owns this loan – hmmmm something sounds very wrong here – Why should this customer have to pay MI now when others that ARE owned fannie or freddie don’t have to – These homes are being sold under market by the banks – who are insured for the loss – these homes are comps – something needs to change here or we will never get out of this mess – there is no incentive for the banks to refi someone already paying a higher rate ON TIME – so I guess nice guys do finish last….this refi program missed a step
Great show. Lets look righting the ship.
Guys, I understand your love for San Fran, but it looks like a repeat of Giants/New England this year. Go Giants!
New England isn’t about to let that happen again. Go Patriots!!
GO GIANTS!!!!!!!!!!!
Have to say that the game was the most exciting one of the season so far. I will have to concede my Saints until next year. Manning is a NOLA guy but I would like to see SF win it. Still think Drew Brees should be MVP.
The video button has a line through it and won’t load
The results, if any, from the Harp Program is now we will have upside down loans with low interest…Now, what is this going to achieve other than the government does not want to show how flawed their interference with the real estate market really is.
LOs will get a commission, Realtors will receive zero and the banks will have NEW bad loans on their books. Mmm Mmm Mmm.
The new HARP guidelines are supposed to be rolled out in March. A few weeks ago I wrote a blog with most of the questions and answers to the new guidelines. You can read it at http://www.newresalehomes.com/blog.
I’m glad that these is program to help upside down home owners re-finance their homes. What is dissappointing, is that for the first time in our history, our government has legitimised theu use of AVM’s which we all know are flawed. Since the home is upside down, the value is not important, since the principal balance is going to get refinanced regardless of the current value. It is interesting, that from within the Real Estate profession, the appraisers are the smallest group, they are the ones that are constantly hung out to dry. This program is not the problem, but the use of AVM’s is a problem. The banks do not seem to care about quality valuations, only the cheapest way to get a deal done, so they use use their influence and power to expand the use of AVM’s. Then the tax payers will be bailing them out again!
So you’re saying that they should require full appraisals to qualify for a program where LTV is immaterial? I am on the appraiser’s side in most cases but that doesn’t make any sense.
Given that 9 different AVM sources gave me values ranging from 350,000 to 820,000 for the same property, I would like to understand why anyone gives any credence to AVMs at all.
as a correspondent lender, we are finding very few lenders who will go over 105%, let alone 125%. It is my belief that unless Fannie and Freddie wave the appraisal on their findings, very few lenders are going to change their policies. Who do you correspond with that will do these deals?
Good question as I am in the same boat. I feel like I’m in front of a house having a great party and all I can say is “It sure looks like they are having fun in there.”
GO 49ERS!!!!