November 2011 : The New HARP , Making Home Affordable Requirements

The government announced changes to its HARP program October 24, 2011. If you’re underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal and without having to pay mortgage insurance.

HARP previously limited eligibility to borrowers whose mortgage exceeded their home value by up to 25 percent, the new HARP guidelines remove that ceiling when the refinancing is into a new fixed-rate mortgage.

Other changes to HARP include:

1. Eliminating certain risk-based fees for borrowers who refinance into shorter-term loans and lowering fees for other borrowers.
2. Eliminating the need for a new property appraisal when Fannie Mae or Freddie Mac provides a reliable automated valuation of the property.
3. Extending HARP through December 2013.
4. Reducing rep and warrant risk for lenders.

More information about HARP is available at this link of the FHFA website