So we had the announcement in November, and the head-fake in December, and now we think we are about to see the real thing – on March 19.
On that date, Fannie and Freddie will roll out the updated computer underwriting system updates that will make it possible for lenders to have slightly more confidence that they’ll be able to sell these HARP loans to the big clearinghouses.
Some things we now know that we didn’t a little bit ago:
- the “no LTV limit” is a real thing, and most lenders are apparently going to honor it
- the “no job” thing is not real. It is possible that there will substantially reduced income documentation requirements, that might include no paystubs. There will probably be employment verification, though.
- the “no appraisal” thing is a fraud. There will be waivers available, but to get one you’ll have to have an LTV in the 75% range, which if you did, you’d have already refinanced, wouldn’t you?
- the “good to go even with MI” is likely to be real. There are still some details to be worked out – I’m told that Wells Fargo, for instance, won’t touch them – but we think these loans will end up being do-able.
- the “use HARP twice” rule is NOT going to be happening. If you got your loan after April 2009, you’re ineligible.
The bottom line is that it’s good, and there will absolutely be a huge number of people applying for these loans starting about right now. If you want to get in on the act, contact me and I’ll get you in at the front of the line.