Home Affordable Refinance Program

Transcription

1 Home Affordable Refinance Program Blake Hampton Fannie Mae Single Family Mortgage March 6,

2 Fannie Mae s Refi Plus Initiative Fannie Mae provides Fannie Mae-to-Fannie Mae streamlined refinance flexibilities through its Refi Plus Initiative Home Affordable Refinance Program (HARP) mortgage loans fall under the Refi Plus Initiative umbrella and are defined as loans with loan-tovalue ratios greater than 80% Borrower benefit is required (lower payment or more secure product, etc.) Same guidelines apply to both Refi Plus and HARP Refi Plus/HARP flexibilities are available for any eligible loan acquired by Fannie Mae prior to June 1, 2009 Refi Plus/HARP offer a lot of flexibility No credit score minimums No LTV maximums Mortgage insurance flexibilities Reduced costs 2

3 HARP Evolution HARP initially announced and implemented in early 2009 On October 24, 2011, the Federal Housing Finance Agency (FHFA) announced changes to HARP in an effort to attract more eligible borrowers who can benefit from refinancing their mortgage loan As a result of FHFA s announcement, Fannie Mae announced changes to Refi Plus and DU Refi Plus on November 15, 2011 The changes were made to further assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae mortgage loan, but may not have been able to refinance to obtain a lower payment or move to a more stable product Additional changes were made to HARP throughout 20 End Date: The HARP program will expire on December 31, 2013! 3

4 HARP - Changes & Timelines More opportunities to help homeowners: Removed the LTV maximum Expanded our credit assessment to say yes to more borrowers Increased access and use of appraisal waivers Reduced costs and increased rep and warrant relief 11/15/2011 /1/2011 1/3/20 2/1/20 3/17/20 4/28/20 6/1/20 Effective date for new guidelines for Refi Plus (manual underwriting) Whole Loan Committing > 5% LTV 30 yr FRM product MBS > 5% LTV 15 yr FRM MBS > 5% LTV 30 yr FRM MBS % LTV 15 yr FRM Whole Loan Committing > 5% LTV 15 yr FRM Whole Loan Committing % LTV 15 yr FRM SEL (Selling Guide Updates released on /20/2011) New HARP Pricing effective delivery date (1/1/20 MBS Issuance) Desktop Originator/Desktop Underwriter Release Notes DU Version 8.3 March Update published for the March 17th implementation Implemented enhancements providing lenders with the estimated property value on certain DU Refi Plus casefiles HARP changes fully implemented on June 1 st - - Other changes made throughout 20 Implemented DU Refi Plus Updates Allow for > 5% LTV for fixed rate mortgages Expand DU Refi Plus property fieldwork waiver 4

5 HARP Volumes 50,000 HARP 2.0 Effective Date (for applications dated /1/11) 40,000 30,000 20,000 10,000 0 Nov- 11 Dec- 11 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- LTV LTV LTV > 5 Source: Data is taken from the FHFA Refinance Report for November 20. Data includes Fannie Mae volumes only. The changes have made an impact to HARP volume! 5

6 Removing Barriers External Outreach Tools & Resources Lender Outreach Reaching More Borrowers Lender Monitoring Stakeholder Summits Policy & Eligibility Changes 6

7 Removing Barriers Policy & Eligibility Changes SEL Announced September 11, 20 Effective with loans acquired on or after January 1, 2013 Goal to clarify lenders repurchase exposure and liability on future deliveries SEL Announced September 14, 20 Effective immediately Goal to help lenders more efficiently reach an even broader base of eligible borrowers SEL Announced October 11, 20 Effective immediately Goal to create opportunities for more borrowers to be eligible for a refinance SEL-20- / LL SEL Announced November 1, 20 (Lender Letter 11/13/) Effective immediately Goal to clarify disaster policy and provide flexibilities for loans impacted by Hurricane Sandy Announced January 29, 2013 Effective immediately Goal to clarify lender s ability to provide incentives to encourage refinancing through HARP 7

8 Borrower Tools & Resources Options to Stay in Your Home Refinance Options Repayment Plan Forbearance Modification Deed-for-Lease Options to Leave Your Home Short Sale Deed-in-Lieu Borrower Resources FM Mortgage Help Centers Housing Counselors Mortgage Company Contacts HARP Lender Information Calculators Videos Links to Helpful Sites Events Beware of Scams Information Tips and Warning Signs Report a Scam Contact Information HUD-approved Counseling Agencies Take Action Contact Mortgage Company, FM Mortgage Help Center, Housing Counselor 8

9 Questions? 9