Fannie Mae has released some details regarding the revised “DU Refi Plus” program that falls under the government’s Home Affordable Refinance Program (HARP). You can read the press release HERE. At this point I am not aware of any lenders who have actually implemented these updates into their published underwriting guidelines so as far as I know this is still not available to consumers. But, I would expect that to take place over the next couple weeks. Here are some of the highlights that I found interesting:
- DU Refi Plus (AKA “HARP”) extension: “…lenders will now be able to originate Refi Plus and DU Refi Plus mortgage loans provided the note date is on or before December 31, 2013.“
- No more 105%/ 125% loan-to-value (LTV) limit for fixed rate mortgages: “Fannie Mae is removing the maximum LTV ratio limit for Refi Plus mortgage loans secured by fixed-rate mortgages with terms up to 30 years.“
- LTV expansion not available until March 2012: “The changes to the LTV ratio limits described above will be implemented in DU (DU is Fannie Mae’ underwriting engine) in March 2012.“
- Pricing on mortgage rates for HARP should be improved, especially for 15yr fixed rates: “Fannie Mae is significantly reducing the maximum amount of loan-level price adjustments (LLPAs) that apply to “HARP” mortgage loans – loans secured by principal residences with LTV ratios greater than 80%.“
There was no mention of extending this program to homeowner’s who took advantage of this program once already when rates were higher. We’ll have to see if lenders create “overlays” or if they roll this program out per the notes above. I anticipate we’ll know more in the next couple weeks.