The Responsible Homeowner Refinancing Act of 2013

Readers note:  I rarely get excited about proposed legislation.  However, if this sifts through the sludge of Washington D.C., there may be some benefit to homeowners paying their mortgage on a timely basis.  So for that, I thank you Senators Menendez and Boxer.

Proposed Legislation:

Two U.S. Senators have reintroduced legislation to help homeowners refinance into lower interest mortgages. The bill,The Responsible Homeowner Refinancing Act of 2013, removes the barriers preventing the Fannie Mae and Freddie Mac borrowers from refinancing their loans at the lowest rate possible.

The legislation, introduced by Robert Menendez (D-NJ) and Barbara Boxer (D-CA) had failed to pass the 112^th Congress.   If passed it would direct the GSEs to require the same streamlined underwriting and associated representations and warranties under the Home Affordable Refinancing Program (HARP) to new servicers who now face stricter underwriting guidelines fear greater risk from putbacks and loan repurchases than do the current servicers who already have the risk.  This would level the playing field and unlock competition between banks for borrowers' business. 

(read all the details here)

Typically, I would summarize the details of this proposed legislation; however, it is in its initial stages and there is no need to raise hopes.   Hopefully, it will include extending the dates on HARP program past the current expiration 12/31/2013; perhaps provide language for the borrowers who are underwater and not currently backed by Fannie Mae and Freddie Mac; and finally extend the dates of eligibility.  Currently borrowers are only eligible for HARP if their loan is backed by Fannie Mae or Freddie Mac and purchased by the entities prior to June 2009.  

Keep in mind, my thoughts are only my thoughts.

Thanks for reading,

Craig Turley

If you are a homeowner in Arizona or California, please feel free to reach out to me to find out your refinance eligibility status.  It takes 5 minutes.

Happy Groundhog Day from Phil!

H/T:  Thoughts from the Canyon

Have you taken advantage of HARP 2.0 yet?

Have you taken advantage of HARP 2.0 mortgage refinance program?

HARP, the Home Affordable Refinance Program, was started in 2009 and provides relief to homeowners due to the real estate downturn, including under water mortgages.

HARP refinance program eligibility:  (AKA DU Refi Plus, Freddie Relief)

1. Your loan must be backed by Fannie Mae or Freddie Mac.
2. Your current mortgage must have a securitization date prior to June 1, 2009

If you meet these two criteria, you may be HARP eligible.  

Criteria for qualification exists and credit overlays vary from lender to lender.  Program eligibility includes primary residences, investment properties and second homes.  Individual scenarios vary.

Is your loan backed by Fannie Mae or Freddie Mac?
Fannie Mae Lookup

Freddie Mac Loan Lookup

If your mortgage is an FHA, USDA or a jumbo mortgage, you are not HARP eligible.  FHA mortgages can be refinanced via the FHA Streamline Refinance program. VA mortgages may be refinanced via the VA IRRRL mortgage program (VA Streamline Refinance).

Please feel free to contact me for a free mortgage consultation.  Let's determine if one of these programs may benefit you.

Until Next Time,

Craig Turley

Craig Turley is a 20 year mortgage industry veteran with experience as a corporate executive, entrepreneur, and banking.  He is licensed as a mortgage banker in Arizona and California.