New HARP Guidelines Released

November 16, 2011 at 2:41 PM

The newly expanded guidelines for the Home Affordable Refinance Program have been released by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. The program becomes effective on loans with application dates on or after Dec. 1.

In addition to the elimination of maximum LTVs on both 15- and 30-year mortgages, there are no limits on the maximum CLTV or HCLTV. Fixed-rate mortgages with amortizations up to 40 years will be limited to 105 percent LTVs as will ARMs with initial fixed periods greater than or equal to five years and terms up to 40 years.

Fannie Mae HARP extension is detailed in the Fannie Mae Selling Guide Announcement SEL-2011-12.

Freddie Mac HARP guidelines are outlined in Freddie Mac Bulletin 2011-22. The Federal Housing Finance Authority continues to require no 30-day lates in the past six months with one 30-day late allowed in the past year.

Lenders that opt to reach out to borrowers are required to include specific language about HARP enhancements and how to determine whether the borrowers’ loans are owned by Fannie or Freddie Mac.

Premier Advantage Marketing is prepared to help you with your mortgage direct mail marketing to fill your lending pipeline. Your lending success is our first priority. Please call us at 888-799-3959.