In the last month, there have been several refinance proposals from the White House. Some are calling it the Obama Refinance Program. We have had several phone calls and emails about this information. So far nothing has happened.
This is not a new program, this is a proposal that Congress has to vote on. By the time we see something from Congress, what has been mentioned may be totally different. Then once it is announced (assuming it is) we need to see the updates from the banks to see how it will be implemented.
In November 2011, Fannie and Freddie announced the changes to HARP II. It is suppose to eliminate any issues with the loan to value and also help with income guidelines. This was originally for loan applications dated December 1, 2011 and after. We still haven't seen any real updates to the program and probably won't until mid-March. Fannie and Freddie will come out with their updated computer programs in March and that is when we expect most banks to come out with their guidelines. So far I have seen a couple of banks talk about going to 125%, maybe 150% of the appraisal value. For many people that isn't high enough. The program guidelines from Fannie and Freddie do not have loan to value limits, but most banks aren't willing to take that risk.
Once we know what the banks are willing to do, I will make sure I update everyone. Because we know how long this has taken, I am not sure we will see any of the possible changes that the White House has announced recently. If we do see more changes, I'll let you know!
Leslie Vanderwerf, NMLS ID#335509, Summit Mortgage - Email – Website
