Revamped refinance relief on the way

President Obama unveiled “looser” guidelines for the government’s Home Affordable Refinance Program (HARP) over the weekend.  Here are a couple highlights from the WSJ article on the topic:

*”The overhaul will, among other things, let borrowers refinance regardless of how far their homes have fallen in value, eliminating previous limits.” (previous limits were 125% loan-to-value)

*”The plan will streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as homeowners are current on their mortgage payments…”

*”The changes being prepared by federal officials should boost refinancing because they will let banks avoid the risk of any “buy-back” on a HARP mortgage as long as borrowers have made their last six mortgage payments and they prove that they have a job or another source of passive income. They are also set to reduce loan fees that Fannie and Freddie charge. The fees will be waived on borrowers that refinance into loans with shorter terms, such as a 15-year mortgage.”

*”Pricing details won’t be published until mid-November, and lenders could begin refinancing loans under the retooled program as soon as Dec. 1, according to federal officials. Loans that exceed the current limit of 125% of the property’s value won’t be able to participate until early next year. The program’s expiration date, originally next June, will be extended through 2013. HARP is only open to loans that Fannie and Freddie guaranteed as of June 2009.“

We have not received any details from our investors yet but hopefully we’ll have more specific details in the coming weeks.